Individual Assignment #3 consists of 2 questions. Q1 accounts for 2 points and asks you to calculate the current market value of a partially amortizing mortgage loan used to finance the investment of an income-producing property. Q2 accounts for 8 points and asks you to generate the cash flows to the investors of an MPT security backed by a pool of fixed-rate residential mortgage loans in two scenario (w/o prepayment and w/ prepayment).

Both of the 2 questions are included in this Excel file with the instructions. Please download this Excel file, use the tables in this Excel file to do the calculations and to complete this assignment.

Individual Assignment #3Download Individual Assignment #3

How to submit it?

1. step 1: rename your Excel file as HW3_FirstName_LastName

2. step 2: Upload the completed Excel file here.