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10.) Consider a pool of mortgages totaling $1,000,000. The interest rates is 5% and the mortgages are amortized over three years making yearly payments. Like

10.) Consider a pool of mortgages totaling $1,000,000. The interest rates is 5% and the mortgages are amortized over three years making yearly payments. Like we did in class, convert this pool into a series of 5% annual coupon bonds with maturities of one, two and three years.

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