The Blue Algae Mortgage Company has originated a pool containing 75 ten-year fixed rate mortgages with an average balance of $100,000 each with 1% origination fee. The annual interest rate on all loans in the pool is 12% and all loans require monthly payments. Initial Pool Balance $7,575,000 Annual Interest Rate 12% Maturity (years) 10 Payments per year $108,679.24 Question 1:What price should Blue Algae obtain if the pool is sold immediately to an investor with a required annual return of 11% and no prepayment is expected?