1. Your supervisor at First Federal Trust of Kamloops (FFTK) directs you to calculate the price FFTK should bid today for a single mortgage coupon to be paid in exactly three months. This coupon is taken from a newy-originated interest-only mortgage which has an initial balance of $600,000.00, an announced annual coupon rate of =5.00% and is amortized over twenty-five years. If you observe that one-month Canadian T-bills are currently selling for $99.50 per one hundred dollars face value and three-month T-bills for $97.62 per one hundred dollars face value, you can correctly infer that : the market price of this coupon today is approximately $2,929.99 the market value of a current dollar in tems of niskless dollars receivable in three months, is 1.0056 the market price of this coupon today is approximately $2,415.46 the grces form of the current three-month market interest rate is 1.0091. none of the above Question 2 (5 points) Atter the owner of a $650,000.00 home defaults on the second mortgage on his property, the owner of that mortgage, BMO, fles a foredosure suit against him. BMO's mortgage currently has an unpaid balance of $275,000.00, while the homeowner continues to service the first mortgage, issued by CIBC, which has a current UPB of $415,000.00. Assuming the suit is successtul, BMO will only bid for the property at the foredosure sale if it believes that: CIBC will accept the current UPB of its first mortgage the homeomner will invoke his right of redemption and pay half of the UPB on both mortgages the market price of the home will exceed $690,000.00. the market price of the home will exceed $415,000.00. the homeowner will fail to invoke his right of redemption 1. Your supervisor at First Federal Trust of Kamloops (FFTK) directs you to calculate the price FFTK should bid today for a single mortgage coupon to be paid in exactly three months. This coupon is taken from a newy-originated interest-only mortgage which has an initial balance of $600,000.00, an announced annual coupon rate of =5.00% and is amortized over twenty-five years. If you observe that one-month Canadian T-bills are currently selling for $99.50 per one hundred dollars face value and three-month T-bills for $97.62 per one hundred dollars face value, you can correctly infer that : the market price of this coupon today is approximately $2,929.99 the market value of a current dollar in tems of niskless dollars receivable in three months, is 1.0056 the market price of this coupon today is approximately $2,415.46 the grces form of the current three-month market interest rate is 1.0091. none of the above Question 2 (5 points) Atter the owner of a $650,000.00 home defaults on the second mortgage on his property, the owner of that mortgage, BMO, fles a foredosure suit against him. BMO's mortgage currently has an unpaid balance of $275,000.00, while the homeowner continues to service the first mortgage, issued by CIBC, which has a current UPB of $415,000.00. Assuming the suit is successtul, BMO will only bid for the property at the foredosure sale if it believes that: CIBC will accept the current UPB of its first mortgage the homeomner will invoke his right of redemption and pay half of the UPB on both mortgages the market price of the home will exceed $690,000.00. the market price of the home will exceed $415,000.00. the homeowner will fail to invoke his right of redemption