21. BOA originates 100 Fully Amortizing Fixed Rate Mortgages, each has a $1000 balance, 8% interest rate (no fees), 2 year term, and annual payments, BOA immediately issues IO and PO strips backed by the pool of these mortgages and sells them to investors who discount payoffs at 40%, what profits does BOA make immediately? 22. Using the information in the previous question, what is the value of all PO strips 23. What would be the value of all PO strips if the expected prepayment rate in year 1 was 24. What would be the value of all PO strips if instead the expected default rate in year 1 was 40%? 40% (and no defaults n year 2)? Assume that in case of default, BOA recovers 70% of balance. 25. Back to the original 021, assume that instead of selling the mortgages immediately , BOA sell them in 1 year. What is -1)? Note that BOA collects the frst mortgage payment. BOA's IRR from this deal (originate mortgages at to and sell at t