Using the assumptions of the MBS Issuer (no defaults), what is the monthly cash flow coming to the MBS Issuer from the Mortgage Pool (i.e. what dollar amount is coming in each month)?

MBS C will be sold at a price of 99.50. What does this mean will be the dollar cost for the entire $1.25 mil face value MBS C? Answer in millions to two decimal places (i.e. x.xx not $x,xxx,xxx)

APPENDIX: THE MBS ISSUANCE You are a fixed income investor and you are evaluating a Mortgage-Backed Security (MBS) from the MBS Issuer You decide to focus on MBS C. MBS Issuer: The MBS Issuer will issue three MBS securities for a total of $5 mil face value. All of the MBS issued will be rated AAA and all mature in 30 years. MBS A will have a notional of $2.5 mil and will receive of the total cash flow coming from the Mortgage Pool. MBS A will be sold for a price of 99.50. MBS B & C will each have a notional of $1.25 mil and each will receive of the total cash flow coming from the Mortgage Pool. MBS B&C wilalso be sold for 99.50 each. . Mortgage Pool owned by MBS Issuer: The mortgage pool is comprised of 50 mortgages, with an aggregate total face value of $5 mil They are each identical: all are traditional mortgages (30yr, monthly pay), all are for $100,000, and all have the same interest rate of 4%. The MBS Issuer believes there will be no defaults Current Market Conditions Average Credit Spreads, in BPS, for Generic Credit Ratings, as compared to USTs 10yr 30yr 10 15 25 25 35 75 50 75 125 100 150 250 UST On-The-Run Par Bond Curve Syr 2.65% 10yr 3.13% YTM (SA) 2.81% 3.73% Reme mber, "par bonds" or "bonds trading at par", mean coupon must equal YTM