Assume an FI originates a pool of short$-$term real estate loans worth $$39$ million with maturities of five years and paying interest rates of $7$ percent $($paid annually$).$ The loans are amortized.

a$.$ What is the average payment received by the FI $($both principal and interest$)$ if no prepayment is expected over the life of the loans?

b$.$ If the loans are converted into real estate certificates and the FI charges a $150$ basis points servicing fee $($including insurance$),$ what are the payments expected by the holders of the securities$,$ if no prepayment is expected?