A 30Y fixed rate mortgage is issued at 6% coupon rate. The loan fully amortizes over 30 year period. Expected payoff time is 8 Years when initially issued. Assuming $1M in loan balance.

a)Price the loan today at 5%, 6%, and 7% yield, assuming loan termination term changes with interest rate (60 months at 5%; 120 months at 6%, and extends to 120 months @ 7%