135. You are working with a pool of 1,000 mortgages. Each mortgage is for $100,000 and has a stated annual interest rate (nominal) of 6.00%. The mortgages are all 30-year fixed rate fully amortizing. Mortgage servicing fee is an annual 0.25% of the mortgage balance charged on monthly basis as a percentage of the mortgage balance at the beginning of the month. a) Complete the following table: Beginning Required Month Balance Payment 1 100,000,000 Interest 500,000 2 Expected Servicing Fee Principal Prepayment 99,551 16,665 33,322 Ending Balance 99,750,430 b) Compute cash flows to investors for the first two months. 136. A pool of morgages has a value of $100 million. All mortgages in the pool have an interest rate of 9%, term of 30 years and fixed monthly payments. Model cash flows from this mortgage pool for the first 12 months assuming that prepayment speed is characterized by the constant single monthly mortality of 0.1% of the remaining mortgage balance by creating a table with the following columns: (1) month, (2) beginning mortgage balance (BMB), (3) payment (PMT), (4) Interest paid (Int), (5) Principal reduction (PrRed), (6) remaining mortgage balance (RMB), (7) principal prepayment (PrPrep), (8) ending mortgage balance (EMB), (9) cash flow (CF). Assume no servicing fee.