Hi All,
Has anyone taken a crack at this yet? I find that I have issues with modelling, but once I get my model ok, I think I can do an "ok" audit trail. With that said, I'm doing this paper now and having a bit of trouble. I found that I had to use a "product if" array formula to calculate the fixed forward rates. This seems like it may be more than what the examiners require. Is there a simpler way to model this? Additionally, I'm getting an outstanding balance at the end of my 25-year mortgage. Seems odd. Additionally, I'm a bit confused as to whether the variable mortgage payments should be calculated using 5 year forward rates... If not, the annual annuity factors would be less than 1. So very confused at this point. Any help please.
Thanks much.
Has anyone taken a crack at this yet? I find that I have issues with modelling, but once I get my model ok, I think I can do an "ok" audit trail. With that said, I'm doing this paper now and having a bit of trouble. I found that I had to use a "product if" array formula to calculate the fixed forward rates. This seems like it may be more than what the examiners require. Is there a simpler way to model this? Additionally, I'm getting an outstanding balance at the end of my 25-year mortgage. Seems odd. Additionally, I'm a bit confused as to whether the variable mortgage payments should be calculated using 5 year forward rates... If not, the annual annuity factors would be less than 1. So very confused at this point. Any help please.
Thanks much.
Last edited: