The Green S&L originated a pool containing 75 ten-year, fixed-rate, interest only mortgages with an average balance of $200,000 each. All mortgages in the pool carry a coupon of 10%. (For simplicity, assume all mortgage payments are made annually at 10%). The prepayment rate will be 5% annually in years 1 through 4 and 7% thereafter (assume that prepayments are based on the pool balance at the end of the preceding year and begin at the end of year

1). Green would now like to sell the pool to Freddie Mac. What is the price that Green could obtain if market interest rates were 11%?

2) What is the pool factor (*not in percent*) at the end of year 3 for the mortgages in the pool?

3) What is the WAL (in years) for the pool?