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BOA originates 10 Fully Amortizing Fixed Rate non-recourse Mortgages, each has a $100 balance, 20% interest rate (no fees), 2-year term, and annual payments. BOA

BOA originates 10 Fully Amortizing Fixed Rate non-recourse Mortgages, each has a $100 balance, 20% interest rate (no fees), 2-year term, and annual payments. BOA immediately issues IO 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?

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