B. QWE Bank Limited originates a pool of 250 mortgages, each with 30-year maturity and averaging $250,000 with an annual mortgage coupon rate of 6 percent. The mortgage backed security insurance fee is 50 basis points and QWE Bank's servicing fee is 20 basis points. Requirements: i. ii. What is the monthly mortgage payment? [1 mark] What are the expected monthly cash flows to securitized bondholders? [2 marks] What is the present value of the pass-through security bonds? (Assume that the risk adjusted market annual rate of return is 6 percent compounded monthly) [2 marks] iii. iv. What are QWE Bank's expected monthly cash flows? [1 mark] B. QWE Bank Limited originates a pool of 250 mortgages, each with 30-year maturity and averaging $250,000 with an annual mortgage coupon rate of 6 percent. The mortgage backed security insurance fee is 50 basis points and QWE Bank's servicing fee is 20 basis points. Requirements: i. ii. What is the monthly mortgage payment? [1 mark] What are the expected monthly cash flows to securitized bondholders? [2 marks] What is the present value of the pass-through security bonds? (Assume that the risk adjusted market annual rate of return is 6 percent compounded monthly) [2 marks] iii. iv. What are QWE Bank's expected monthly cash flows? [1 mark]