After observing, that the respective net market interest rates on 6 and 12 month Canadian T-bills...

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After observing, that the respective net market interest rates on 6 and 12 month Canadian T-bills are 1.05% and 1.49%, CIBC wishes to market a mortgage-related security which consists of one 6 month and one 12 month coupon payment taken from a pool of kdentical newly-otiginated, interest-only, fixed-tate, fully-insured residential mortgagen. Each mortgage features an initial balance of $800, 000.00, a five-year term and is fully amortized over a 20 year period. If the announced annual rate on these mortgages is 4.0%, your fotecast, using the actual market interest rates, of the current market price of each such security is approsimately O $6, 131.87 O $5, 031.78 O $5.223.12 $1.289. 12 $6,232.12 After observing, that the respective net market interest rates on 6 and 12 month Canadian T-bills are 1.05% and 1.49%, CIBC wishes to market a mortgage-related security which consists of one 6 month and one 12 month coupon payment taken from a pool of kdentical newly-otiginated, interest-only, fixed-tate, fully-insured residential mortgagen. Each mortgage features an initial balance of $800, 000.00, a five-year term and is fully amortized over a 20 year period. If the announced annual rate on these mortgages is 4.0%, your fotecast, using the actual market interest rates, of the current market price of each such security is approsimately O $6, 131.87 O $5, 031.78 O $5.223.12 $1.289. 12 $6,232.12

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