A MPT is issued on a pool of mortgages that carry an 11% interest rate. The coupon rate offered to investors is 10.5% and the servicing fee is 0.5%. If market interest rates are at 10.5% which of the following describes the price of this security?

1.		Will sell at par.
2.		Will sell at a discount.
3.		Will sell at a premium.
4.		Cannot be determined from information provided.