Question 8

1. Given the following information on a MPT, what is the anticipated total cash flow available to investors in year 2?

   10 year FRM, fully amortizing, annual payments.

   No prepayment

   100 loans in the pool

   Average starting balance of $350,000/loan

   Mortgage rate 5%

   0.5% Servicing fee

Question 10

1. Given the following information on a MPT, how much money is each individual investor receiving in year 5?

   (Note: You can perform this calculation with the spreadsheet or by completing it iteratively.)

   • 10 year FRM, fully amortizing, annual payments.

   • No prepayment or default

   • 100 loans in the pool

   • Average starting balance of $350,000/loan

   • Mortgage rate 5%

   • Servicing fee of 0.5% of starting outstanding pool balance

   • There are 40 investors with equal shares in the pool PLEASE LABEL EVERYTHING