Question: QUESTION 1 10 points Saved A PO and IO class of securities is formed backed by a $7,500,000 pool of 10-year FRMs making annual payments

QUESTION 1 10 points Saved A PO and IO class of

QUESTION 1 10 points Saved A PO and IO class of securities is formed backed by a $7,500,000 pool of 10-year FRMs making annual payments with a 1 0% interest rate. There are no prepayments or servicer/guarantee fee, what is the present value of the PO class if the discount/market rate is 9%? Excel is recommended for this problem. 7981324.33 QUESTION 2 10 points Save Answer Same set-up as Q1. A PO and IO class of securities is formed backed by a $7,500,000 pool of 10 year FRMs making annual payments with a 10% nterest rate. There are no prepayments or servicer/guarantee fees. What is the present value of the IO class if the discount/market rate is 996 Excel is recommended for this

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