checking numbers,

part 1)

for year 1 I got 32,650, for year 2 I got 27,711, for year 3 I got 23,327, for year 4 I got 19,441, and for year 5 I got 16,002.

part 2)

@ 6% I got 1,024 and for @ 8% I got 977.

1. The Mini Fannie just acquired a pool of mortgages with total principle value of $100,000. All loans in the pool are identical - constant payment mortgage with 7% interest rate, 5-year term, and annual payment. Mini Fannie is going to issue 100 shares of mortgage pass-through securities with this pool. Given an anticipated constant prepayment rate of 10% per year and 0% servicing fee, 1) List the stream of 5-year annual cash flows to investors (loan payments plus prepayments). 2) Given the 5-year cash flow in 1), what is the per share value of the pass-through if investors' required rate of return is 6%? What if they require 8% return