Problem II MBS (12 Points) First Mortgage Investors purchases a $100,000 Face value MBS carrying a coupon of 9 percent and a maturity of 30 years. 1. What is the monthly payment on the MBS? 2. What is the interest paid in the first month? 3. What is the principal repaid in the first 5 years? 4. What is the interest paid in the first 5 years 5. What will the MBS sell for in each of the following yield-survival scenarios? Yield (%) 7.00 8.5% 10% Years Survived 30 Problem II MBS (12 Points) First Mortgage Investors purchases a $100,000 Face value MBS carrying a coupon of 9 percent and a maturity of 30 years. 1. What is the monthly payment on the MBS? 2. What is the interest paid in the first month? 3. What is the principal repaid in the first 5 years? 4. What is the interest paid in the first 5 years 5. What will the MBS sell for in each of the following yield-survival scenarios? Yield (%) 7.00 8.5% 10% Years Survived 30