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# Consider a mortgage pool that consists of 10 mortgages. Each mortgage carries an interest rate (note rate) of 10%, 10 years to maturity, principal of

Consider a mortgage pool that consists of 10 mortgages. Each mortgage carries an interest rate (note rate) of 10%, 10 years to maturity, principal of $1,000, and *pays interest annually*. Assume one mortgage per year prepays in the pool.

If the interest rate (discount rate) is flat at 12%.

What is the value of the *mortgage pool*?

Round your answer to a dollar unit. e.g. if your answer is 8932.94, write down 8933.

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