lond Valuation (30 points - 20 minutes Problem 1012 points) You want to take out a 15 year fixed rate modo a SS 00 hours 20% down payment to be able to give you for themOur rates are 9.5% (nominal rate, compounded monte La Calculate your monthly payment on this montese 1.b For your first monthly payment (calculated in 1.a), how much of this payment will go towards interest and how much will go towards principal repayment? 1.c After exactly one year (i.e., immediately after the 12th payment), assume that your amortizing table shows the principal left on your loan to be $387,335.19. On this date, your $200,000 annual bonus to reduce this principal outstanding on your mortgage, an continue making the same monthly payment that was calculated in part 1.a). After how many months will the loan be fully paid off? Problem 3 (5 points - 8 minutes): You are working as a fixed income trader within an investment bank. A client asks you to show a price for a $1000 par, 5% coupon (nominal rate) US Treasury bond with 7 years remaining in its life. Coupons are paid semiannually and the next coupon payment is exactly six months away. You show her the following bid-ask (expressed in yield to maturity): Bid Ask 6% 5.90% 3.a if your client wants to buy this bond from you, which rate would you trade at? 3.b If you manage to buy and then sell this bond, in the same day, at your bid and ask prices sho above, what is the profit or loss (p&l) in dollars that you will make per bond