7. What is a secondary mortgage market? Discuss the advantages of securitization. 8. Calculate the monthly mortgage payments. (a) Suppose you borrow $100,000 at 6% for 30 years, to be repaid monthly. What is the monthly payment? (b) You need a loan of $100, 000 to buy your new home. The bank offers a choice of a 30-year loan at an APR of 8% or a 15-year loan at 7.5%. Compare your monthly payments and total loan cost under the two options. (c) John wants to buy a house that costs $175,000. His bank requires a down payment of $18,000 to approve a 25-years mortgage at an annual interest rate of 8%. How much John would pay in monthly mortgage payments? 9. Discuss the difference between fixed income and equity securities