Please show work.....

An investor is considering the purchase of either an IO or PO strip from a CMO offering. The portion of the mortgage pool backing this tranche consists of $$1\mathrm{.}18$ million in mortgages with a remaining maturity of $10$ years and an $8$ percent interest rate.

Required:

a$1.$ Assuming annual payments and a zero prepayment rate, prepare a schedule showing the IO and PO cash flows that would be payable to investors in this tranche.

a$2.$ If the interest rate demanded by investors on this investment is also $8$ percent, what would be the prices of the IO and PO strips?

b$.$ If interest rates increased to $10$ percent and prepayments remained at a zero rate, how would the price of the IO and PO strips change? What is the percentage price change of each security?

c$.$ Investor interest rates now decline to $6$ percent. What is the price of the IO$?$ PO$?$ Prepayments now increase to a rate of $20$ percent per year because mortgage borrowers in the pool begin to refinance at lower interest rates. What would prices for the IO and PO be now? $($Assume that the $20\%$ prepayment received at the end of each year is based on the outstanding loan balances at the end of the preceding year.$)$ What is the percentage price change of each security?