QUESTION 12 A MPT is being issued backed by a mortgage pool that consists of 100 mortgages with an average balance of 150,000. Mortgages are 10 year FRMS with annual payments. The mortgage rate in all of them is 5%. Assume that there is no prepayment and no servicer/guarantee fee in the projected cashflows of the mortgage pool. If the investor has a 2% discount rate, what will be their valuation of the MPT at origination be compared to the pool's par value at origination ($15,000,000)? Equal Higher O Cannot be determined with the information given Lower QUESTION 13 A CMO has been issued with 3 tranches and a residual (the residual owns no principal at origination). At origination: - Tranche A investors own $6,000,000 of principal with a coupon rate of 3.50%. - Tranche B investors own $4,000,000 of principal with a coupon rate of 3.70%. - Tranche Z investors own $2,000,000 of principal with a coupon rate of 4.50%. The residual carries no principal and receives remaining payments. At origination, the mortgages backing the security issued are FRM with mortgage rate of 4.50% with 30 year maturities and MONTHLY payments. Assume no servicing/guarantee fee and no prepayments. Remember to adjust rates to monthly if necessary. Round your answers to cents. What is the mortgage pool's starting balance at origination