Question: Problem 6 - 4 an Secondary Mortgage Purchasing Company ( SMPC ) wants to buy your mortgage from the local savings and loan. The original

Problem 6-4an
Secondary Mortgage Purchasing Company (SMPC) wants to buy your mortgage from the local savings and loan. The original balance of your mortgage was $140,000 and was obtained five years ago with monthly payments at 10 percent interest. The loan was to be fully amortized over 30 years.
Required:
a. What should SMPC pay if it wants an 11 percent return?
b. What is the market value assuming the loan is repaid after 5 additional years? answer in percentages please.

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