What is the present value of a $20 million pool of 15-year mortgages with an 8.5 percent per year monthly mortgage coupon if market rates are 5 percent? The GNMA guarantee fee is 5 basis points and the FI servicing fee is 45 basis points.

a.	Assume that the GNMA pass-through is fully amortized. (Enter your answer in dollars not in millions. Do not round intermediate calculations. Round your answer to the nearest dollar amount.)

Present value

$

b.

Assume that the GNMA pass-through is only partially amortized. Market rates are still 5 percent. If there is a lump sum payment at the maturity of the GNMA pass-through that equals 40 percent of the mortgage pool's face value, find the present value of the pass-through. (Enter your answer in dollars not in millions. Do not round intermediate calculations. Round your answer to the nearest dollar amount.)

Present value

$