answer wuestions 17 and on. Info is on q.16

Question Completion Status: QUESTION 16 BOA originates 10 Fully Amortizing Fixed Rate non-recourse Mortgages, cach has a $100 balance, 20% interest rate (no fees), 2-year term, and annual payments, BOA immediately issues 10 and PO strips backed by the pool of these mortgages and sells them to investors who discount payoffs at 10%. What profits does BOA make immediately? 65455 89 864 136 540 QUESTION 17 Using the information in the previous question, what is the value of all PO strips? 89 654,55 540 136 864 QUESTION 18 What would be the value of all PO strips if the expected prepayment rate in year I was 40%? QUESTION 19 What would be the value of all PO strips if instead the expected default rate in year I was 40% (and no defaults in year 2)? Assume that in case of default, BOA recovers 70% of balance. QUESTION 20 Back to the original 016, assume that instead of selling the mortgages immediately, BOA sells them in one year. What is BOAS IRR from this deal (originate mortgages at t- and sell att 1)? Note that BOA collects the first mortgage payment, so it sells just the one remaining payment. As in original Q20, no prepayment or default here