1) Let the GNMA mortgage pool with the principal of $20 million. Maturity is: 30 years with a monthly mortgage payment of 10 percent per year. Suppose no prepayments.

i) Compute the monthly mortgage payment (100 percent amortizing) on pool of mortgages?

ii) If GNMA insurance fee is 6 basis points and servicing fee is 44 basis points, find out the yield on the GNMA pass-through?

iii) Determine the monthly payment on GNMA in part (ii)?

iv) Compute first monthly servicing fee paid to originating FIs.

v) Compute first monthly insurance fee paid to GNMA.