ABC Bank Limited originates a pool of 250 mortgages, each with 30-year maturity and averaging $250,000 with an annual mortgage coupon rate of 6 percent. The mortgage backed security insurance fee is 50 basis points and ABC Bank's servicing fee is 20 basis points. Requirements:

i. What is the monthly mortgage payment?

ii. What are the expected monthly cash flows to securitized bondholders?

iii. What is the present value of the pass-through security bonds? (Assume that the risk adjusted market annual rate of return is 6 percent compounded monthly)

iv. What are ABC Bank's expected monthly cash flows? [1 mark]