Real Estate Finance, answers included just need the steps to get there.

2. The Green S&L originated a pool containing 75 ten-year fixed interest rate mortgages with an average balance of $100,000 each. All mortgages in the pool carry a coupon of 12 percent. (For simplicity, assume that all mortgage payments are made annually at 12% interest.) Green would now like to sell the pool to FNMA. a. Assuming a constant annual prepayment rate of 10 percent (for simplicity, assume that prepayments are based on the pool balance at the end of the preceding year and begin at the end of year 1), what is the price that Green could obtain if market interest rates were (1) 11 percent? (2) 12 percent? (3) 9 percent? b. Assume that five years have passed since the date in (a). What will the pool factor be? If market interest rates are 12 percent, what price can Green obtain now? 2.a Market Interest Rate Price of the Pool 11.00% $7,740,598 2.b Market Interest Rate Price of the pool after 5 years 12.00% $2,680,246 2. The Green S&L originated a pool containing 75 ten-year fixed interest rate mortgages with an average balance of $100,000 each. All mortgages in the pool carry a coupon of 12 percent. (For simplicity, assume that all mortgage payments are made annually at 12% interest.) Green would now like to sell the pool to FNMA. a. Assuming a constant annual prepayment rate of 10 percent (for simplicity, assume that prepayments are based on the pool balance at the end of the preceding year and begin at the end of year 1), what is the price that Green could obtain if market interest rates were (1) 11 percent? (2) 12 percent? (3) 9 percent? b. Assume that five years have passed since the date in (a). What will the pool factor be? If market interest rates are 12 percent, what price can Green obtain now? 2.a Market Interest Rate Price of the Pool 11.00% $7,740,598 2.b Market Interest Rate Price of the pool after 5 years 12.00% $2,680,246