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Given the following information on a Mortgage-Backed Bond assuming annual compounding, perform the calculations indicated. Pool Data Bond Data Amount $100 million Amount $90 million

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Given the following information on a Mortgage-Backed Bond assuming annual compounding, perform the calculations indicated. Pool Data Bond Data Amount $100 million Amount $90 million Coupon rate 11% Coupon rate 10% Maturity 30 years Maturity 20 years 100% PSA 1.3% first year Rate of Return on Fund Balance 7% Default rate 0.5% first 5 years Bond Issuer's Equity $10,000,000 What is total Interest from the pool for year 1? O $11,000,000 O $12,000,000 O $10,000,000 $9,000,000 $13,000,000

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