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APO and 10 class of securities is formed backed by a $7,500,000 pool of 10-year FRMs making annual payments with a 10% interest rate. There

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APO and 10 class of securities is formed backed by a $7,500,000 pool of 10-year FRMs making annual payments with a 10% interest rate. There are no prepayments or serviceriguarantee fee. What is the present value of the PO class if the discount/market rate is 9% ? Excel is recommended for this problem. QUESTION 9 Same setup as above. What is the present value of the 10 class if the discount/market rate is 9%

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