1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
FrozenT [24]
3 years ago
10

The following information is for a collateralized mortgage obligation (CMO). Tranche A of $50 million receives quarterly payment

s at 9 percent per year, tranche B of $100 million receives quarterly payments at 10 percent per year, and tranche C of $50 million receives quarterly payments at 11 percent per year.If at the end of the first quarter, the CMO trustee receives total cash flows of $8 million, how are they distributed among the three tranches? (0.2 points)5. What is the principal outstanding on Tranche A, Tranche B, and Tranche C after the end of year payment in the previous question? (0.2 points)
Business
1 answer:
Verdich [7]3 years ago
8 0
<h3>Answer:</h3><h3>Tranche A interest $50m*9%*3/12                          $1,125,000                                                </h3><h3>Tranche B interest $100m*10%*3/12                       $2,500,000                                                        </h3><h3>Tranche C interest $50m*11%*3/12                           $1,375,000</h3><h3>Principal balances:</h3><h3>Tranche  A        $47 million</h3><h3>Tranche B          $100 million</h3><h3>Tranche C           $50 million</h3><h3 /><h3 /><h3>Explanation:</h3><h3>The approach in debts securitization is that the most senior tranche,tranche A in  this question receives any payment  received in excess of periodic payment of interest.</h3><h3>On that basis,the quarterly payments can be shared between the three tranches as follows:</h3><h3>Total quarterly   payment    received                       $8000,000</h3><h3>Tranche A interest $50m*9%*3/12                            ($1,125,000)                                                </h3><h3>Tranche B interest $100m*10%*3/12                       ($2,500,000)                                                        </h3><h3>Tranche C interest $50m*11%*3/12                           ($1,375,000)                                        </h3><h3>Balance left                                                                  $3,000,000</h3><h3>As earlier reiterated, the balance of $3 million would be used to redeem part of tranche A,hence in tranche A is $47 million($50m-$3m):</h3><h3>Principal balances:</h3><h3>Tranche  A        $47 million</h3><h3>Tranche B          $100 million</h3><h3>Tranche C           $50 million</h3>

You might be interested in
Match each term in Column A with its definition in
fgiga [73]

Answer:

12

Explanation:

i got it right

7 0
2 years ago
Production and sales estimates for June are as follows:
barxatty [35]

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Expected sales volume (units):

Area X 4,000

Area Y 10,000

Area Z 6,000

Unit sales price $25

The total budgeted sales are the result of multiplying the sales in units for the selling price:

Total sales= selling price* number of units

Total sales= (4,000 + 10,000 + 6,000)*25= $500,000

4 0
4 years ago
If a firm favors a push strategy, using direct selling to educate potential consumers about the features of its products, what k
BigorU [14]

Answer:

industrial products

Explanation:

A company that does this and mostly favors a push strategy is usually selling industrial products. That is because a push strategy focuses on taking the product to the potential customer and showing them how it works as well as how it can benefit them, therefore pushing the product on them. Industrial Products are great for such a strategy since they require actual demonstration and can easily show the potential customer the actual value that the product can provide.

3 0
3 years ago
The current Social Security tax rate is BLANK
Zigmanuir [339]

Answer:

6.2%

Explanation:

4 0
3 years ago
An effective price ceiling is imposed in a market. This leads to the development of an illegal black market for the product. How
horsena [70]

Answer:

The price on the black market tends to be higher.

Explanation:

When price ceilings are placed in legal markets, buyers are able to get goods and services at lower prices. But sellers may not be willing to sell unlimited supply of goods at the low price. This could lead to artificial scarcity, and formation of black markets.

The main aim of black markets is for suppliers to maximise profits, so a supplier is able to sell his goods at an amount above the price ceiling set in the legal market.

Also black markets are characterised by practices such as tax evasion, which are beneficial to the suppliers.

6 0
3 years ago
Other questions:
  • Discuss the issue of securing backups. there have been several incidents lately in which backup media containing personal custom
    6·1 answer
  • PNW, LLC purchased equipment, a building, and land for one price of $6,050,500. The estimated fair values of the equipment, buil
    12·1 answer
  • Crawford Company has total proceeds (before segregation of sales taxes) from sales of $7,155. If the sales tax is 6%, the amount
    13·1 answer
  • if one nation becomes more efficient than other nations at producing specific product, mostefficient nation is said to have
    10·1 answer
  • Eastport Inc. was organized on June 5, Year 1. It was authorized to issue 470,000 shares of $9 par common stock and 65,000 share
    8·1 answer
  • Malcolm has decided that he wants to open up his own law practice. The time has come to establish prices for his services. Due t
    8·1 answer
  • Select the correct answer from each drop-down menu.
    8·2 answers
  • If Pratt Company issues 5,000 shares of $5 par value common stock for $210,000, the accounta. Common Stock will be credited for
    14·1 answer
  • The single most important output in preparing financial budgets is the Group of answer choices sales forecast. determination of
    6·1 answer
  • Describe the role of hotel management in the field of tourism. .​
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!