I have made adjustments to the MBS mega formula that calculates the price of a mortgage-backed security. It now allows for default rates (CDR) and loss severity.
In the past I have made other adjustments and I have included a review of these adjustments in the spreadsheet linked below. I’m not sure who will use this new formula, since I have published a number of spreadsheets that allow for Default Rate (CDR) and Loss Severity when calculating the price of Mortgage-Backed Securities. They include both VBA functions and amortization schedules.
A math formula allows for the calculation of an MBS price in one Excel cell, however the formula is much larger than the original mega formula: