please provide answers with formulas included

1 K N10 fx A B D E F G H 1 MPTS Excel Assignment 2 The Blue Algae Mortgage Company has originated a pool containing 75 ten-year fixed rate mortgages with an 3 average balance of S100,000 each with 1% origination fee. The annual interest rate on all loans in the pool is 4 12% and all loans require monthly payments. 5 15 Required Retum Price 7 Initial Pool Balance 8 Annual Interest Rate 9 Maturity (years) 10 Payments per year 11 12 13 Question 1: What price should Blue Algae obtain if the pool is sold immediately to an investor with a required 14 annual return of 11% and no prepayment is expected? Payments from Prepaid Service Cash Flow to 16 Month Borrowers Interest Principal Principal Fee Pool Balance Investor 17 0 18 1 19 2 20 3 21 4 22 5 23 6 24 7 25 8 26 9 27 10 28 11 29 12 30 31 32 33 16 34 17 35 18 36 19 37 20 38 21 39 40 23 MPTS 22:czssana 1 K N10 fx A B D E F G H 1 MPTS Excel Assignment 2 The Blue Algae Mortgage Company has originated a pool containing 75 ten-year fixed rate mortgages with an 3 average balance of S100,000 each with 1% origination fee. The annual interest rate on all loans in the pool is 4 12% and all loans require monthly payments. 5 15 Required Retum Price 7 Initial Pool Balance 8 Annual Interest Rate 9 Maturity (years) 10 Payments per year 11 12 13 Question 1: What price should Blue Algae obtain if the pool is sold immediately to an investor with a required 14 annual return of 11% and no prepayment is expected? Payments from Prepaid Service Cash Flow to 16 Month Borrowers Interest Principal Principal Fee Pool Balance Investor 17 0 18 1 19 2 20 3 21 4 22 5 23 6 24 7 25 8 26 9 27 10 28 11 29 12 30 31 32 33 16 34 17 35 18 36 19 37 20 38 21 39 40 23 MPTS 22:czssana