Third Mortgage Investors makes money by purchasing mortgage backed securities (MBS), stripping them into interest only (IO) and principal only (PO) components, and selling the components for more than it paid for the original security. Suppose the company purchases a $100,000 Face value MBS carrying a coupon of 9 percent and a maturity of 30 years. Assume for the purpose of the following analysis, the MBS will make payments on an "ANNUAL BASIS. 1) What is the annual payment on the MBS 2) What is the remaining principal balance on the MBS if it survives 1-year? 3- years? 5 years? 8 years? 3) What will the MBS sell for in each of the following yield-survival scenarios? Yield (%) Years Survived 1 3 5 8 6.00 7.00 8.00 9.00 4) What is the total cash flow received by the purchasers of the 10 strip, and the PO strip if the MBS survives 1 year? 3 years? 30 years