1.What would be the impact on mortgage-backed security pricing if the pass-through security was not fully amortised? What is the present value of a

$10 million pool of 15-year mortgages with an 8.5 per cent monthly mortgage coupon per annum if market rates are 5 per cent? (The mortgage-backed security guarantee fee is assumed to be 60 basis points and the bank servicing fee 40 basis points. Assume that the pass-through security is fully amortised.) LO 8.6 , 8.7