1. In mid-1980, Green and Green issued a standard 35-year fixed-rate mortgage at 8.6% for $190,000. Forty-eight months later, mortgage rates jumped to 16%. If Green & Green sells the mortgage, how much of a loss is incurred? (Show all working)

2. For the upcoming week, National Bank plans to issue $60 Million in mortgages and purchase $300 Million 31-days T-bills. New deposits of $90Million are expected, and other sources will generate $40Million in cash. What is Nobel's estimate of funds needed? (Show all working)