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									LESSON #9: REVIEW OF FIXED RATE
 MORTGAGE BACKED SECURITIES

Mortgage loans account for a very large percentage of
personal debt in the United States. Virtually every bank,
savings and loan association and credit union in this country
offers mortgage loans. These institutions form the primary
mortgage market, that is, the market in which the instruments
are originally created.This is not, however, the only mortgage
market. A large and very well established secondary market
exists. There is a much larger variety of participants in this
market than in the primary market. In addition to the mortgage
lenders some of the participants include brokerage houses,
insurance companies, pension funds, and mutual funds.

First, let us distinguish between a primary and a secondary
market, and then discuss some of the problems that are unique
to a secondary mortgage market. A primary market as being a
market in which the creator of a product (such as mortgages,
bonds, wheat, cars, etc.) sells to the initial buyer of that
product. A secondary market is one in which goods are resold
after their inital sale. A good example of primary and
secondary markets is the car market. When a factory-owned car
dealership sells new cars that is a primary market. When the
car is later sold as a used car, that is a secondary market.
In the case of mortgages, the creator of the product is the
local bank, S&L or credit union. The financial institution has
created these loans, and they now wish to sell them at a price
higher than the cost of creating the loans. Note that they may
or may not sell all of the loans they create. They may decide
to retain some of the loans that they created for their own
portfolio. Sometimes these "whole" loans are sold to other
banks and financial institutions, but the overwhelming
majority of loans that are sold are sold to one of three
quasi-governmental agencies. These agencies are : the Federal
National Mortgage Association (FNMA), the Government National
Mortgage Association, and the Federal Home Loan Mortgage
Corporation (FHLMC). These three agencies are frequently
referred to as "Fannie Mae", "Ginnie Mae", and "Freddie Mac",

These agencies buy mortgages from all over the country. They
then take mortgages with similar characteristics (such as
coupon, time until maturity, and geographic location) and
package them together as "pools" of mortgages. In effect they
combine a bunch of individual mortgages into one super
mortgage. Once a pool has been created, interests in the pool
are sold. Each interest in the pool has the rights to a
certain percentage of EACH cash flow received from the
mortgages that comprise the pool. For example, if you own a
10% interest in a pool, and one of the mortgages in that pool
is on a house owned by a guy named Spike in Needles, CA, then
every time Spike made a mortgage payment you would receive 10%
of that payment. Actually, you would receive some amount less
than 10% because the bank that originally issued the loan will
get to keep a service fee for taking Spike's check and mailing
it to the agency, and the agency will get to keep a fee for
handling the paperwork associated with the processing of the
loan. This "servicing" of the loan will reduce the amount you
receive by a small amount. Because payments from these pools
of mortgages are "passed through" the agencies to the pool
owners, these pools are frequently referred to as "pass
throughs." (Clever name huh?)

Note that everything is passed through. If Spike were to pay
off his loan today then the entire payoff amount would be sent
to the pool's owners. Obviously prepayments have a major
effect on the yield associated with these pools and we will
discuss this in more detail shortly. Another item to note is
that the burden of the debt is on the mortgage borrower, not
on the bank that wrote the loan. If Spike defaults on his
loan, the the Pin National Bank of Needles, CA does not have
to make any payment to the owners of the pools. Credit risk is
not a major factor to the owners of the pools, however,
because of steps the taken by the agencies. The first, and
least signifigant, step is that all of the mortgages the
agencies will agree to buy conform to certain credit
standards. (You will sometimes hear banks refer to
"conformable" loans.) These credit standards are designed to
minimize defaults. The second step is that the various
agencies offer various guarentees on to the pool owners. GNMA
guarantees (with the full faith and credit of the United
States Treasury) that the owners of the pool will receive full
and timely payment of both principal and interest. So even if
Spike defaults, the investors in the pool will be paid by
GNMA. FNMA offers full and timely payment of principal and
interest also, but it is not backed by the full faith and
credit of the government. Most people, however, feel that the
government will not allow FNMA to default so many investors
treat FNMA as if it were guaranteed by the government. FHLMC
is not guaranteed by the government either, but again most
people perceive its creditworthiness to be equal to GNMA's.
One important difference with FHLMC is that their only
guarantee is for the timely payment of interest and the
ultimate repayment of principal. This means that principal due
but not received will be sent eventually to the bond holder.
Clearly this credit guarantee is a quite valuable service.
Many times primary mortgage lenders will "sell" a portfolio of
loans to one of the agencies and accept as payment an interest
in the pool of loans that the mortgages they sold went into,
or an interest in a pool comprised of similar mortages. This
simply has the effect of reducing default risk from their
mortgage portfolio. Of course the fact that the agency will
keep a servicing fee will reduce the yield they will receive
on the investment.

Each of the agencies has a number of programs that take
different types of mortgages and make different types of
pools. For example, GNMA offers pools based on fixed rate
mortgages with over 20 years left to maturity, pools based on
15 year fixed rate mortgages, pools based on graduated payment
mortgages, and even mortages based on mobile home mortgages.
FHLMC and FNMA offer fewer types of mortgage pools than GNMA.
This lesson will be concentrating on fixed rate mortgages with
more than 20 years remaining. We do this because this is the
mortgage type with the largest number of pools and the most
well-defined secondary market.

One final difference between GNMA, FHLMC, and FNMA is the
"payment delay." The payment delay is the time between when
the mortgage payments made by the mortgagees to the day when
the agency pays the pool owners. This payment delay is simply
the turnaround time for the operations people at the various
agencies. GNMA has the shortest payment delay at 45 days. FNMA
is second at 45, and FHLMC has a 75 day payment delay. So if
you bought into a GNMA pool today, and in 30 days was the
first payment due date on the actual mortgages, you would
receive your first payment in 45 days. In exactly one month
after the first payment you would receive the second payment,
and 30 days later the third, etc. So the net effect is that
you receive your payments 15 days later than if you owned the
actual mortgages. This will effect the yield on the instrument
and must be taken into account in the model that we will
develop.

There is a very well defined secondary market for these
mortgage pools. If you wishe to buy a GNMA pass-through you
could buy a new one from GNMA, or you could buy one from one
of the many brokerage houses that comprise the secondary
market. As is the case with bonds, the price on these
mortgages fluctuates depending on the current market interest
rates. So the price paid for the instrument will determine the
yield on the instrument. These pools are generally referred to
as Mortgage Backed Securities (MBS.)

As with all debt instruments the determination of a price or
yield on the security is fairly straightforward. First, all of
the cash flows from the security are determined. These cash
flows are discounted back at a given yield to determine the
price, or a Newton's method technique is used to find a yield
that will generate a given price. Generally the interest
payments are simply determined as being the coupon rate less
the servicing percentage the mortgage lender keeps. The
computation of principal is a little more complicated. If none
of the mortgages in the pool were to prepay, we could simply
treat the mortgage pool as one big mortgage and lay out the
scheduled principal flows in an amortization table. There will
be some prepayment, however. So we must not only figure out
the scheduled mortgage payment, we must also try to decide
what the likely prepayment rate is and how that will affect
principal (and hence future interest) cash flows.

The model that we will use to estimate prepayment is the PSA
model. This model was orignally developed by the Public
Securities Association and is now the most widely used
prepayment model. This model assumes that (on a 30-year
mortgage), prepayments begin in the first month at an annual
rate of .2%, and rise by .2% each month until month #30 where
a constant annual prepayment rate of 6% is achieved. This six
percent rate is constant for the rest of the life of the pool.
Obviously different mortgages have different actual prepayment
rates. These rates are quoted in terms of percentage of PSA. A
pool that was paying off at twice the rate of the PSA model
would be quoted as being at 200% PSA. A pool that was paying
off at half the rate of the PSA model would be quoted as being
at 50% PSA. You can examine this model and its effects in the
model we have developed.

One interesting effect of having prepayment in a security is
that it creates negative convexity. From the earlier
discussion of bonds one might recall that in general a higher
yield causes a lower yield and vice versa. That is, the rate
at which duration is changing is always positive. With a
mortgage-backed security the case is different. When interest
rates move downward, the prepayment level rises because
home-owners will refinance their homes. This means that
investors in the pools will receive their principal earlier
and they will be unable to reinvest at as high an interest
rate. This causes the price of the MBS to fall. At the other
extreme, when interest rates are rising, the prepayment level
is low, this means that investors are not able to recoup the
principal as quickly and so they cannot invest at the higher
yield levels. The important thing to notice is that the price
of the MBS follows the direction of interest rates (at least
at extreme values.) This means that the rate at which the
duration is changing is not always positive. In fact MBS' have
negative convexity. This is extremely important to realize if
one is trying to hedge the price movement risk of an MBS with
some positive convexity instrument such as a treasury bond. If
one were doing that and interest rates fell, the MBS would
loose money, and so would the hedge. (Since the hedge is a
negative position in the treasury security.) The investment
would be suffering losses on both sides of its hedge.

You may use the area below to examine the effect of a change in
mortgage rates on the anticipated prepayment speed as measured
by PSA. As rates fall, PSA increases by some amount. This rel-
ationship is specified by Fabozzi as:
            a - b * arctan ( d * (yield - coupon + c) )

COUPON :         0.08 GNMA Monthly Pay Pass Thru
d  :           123.11 Adjustment Factor          a                :         0.3
c  :             0.02 Lag in Prepaying           b                :        0.16

                          Prepayment - Yield Relationship
                          (Assume 330 months remaining)

            Yield         Spread      CPR         PSA                 SMM
            -             -           -           -           -       -
                  0.05          0.05        0.3           5             0.029286
                 0.055         0.055        0.3           5             0.029286
                  0.06          0.06        0.3           5             0.029286
                 0.065         0.065        0.3           5             0.029286
                  0.07          0.07        0.3           5             0.029286
                 0.075         0.075        0.3           5             0.029286
               0.0775        0.0775         0.3           5             0.029286
              0.07875       0.07875         0.3           5             0.029286
                  0.08          0.08        0.3           5             0.029286
              0.08125       0.08125         0.3           5             0.029286
               0.0825        0.0825         0.3           5             0.029286
              0.08375       0.08375         0.3           5             0.029286
                 0.085         0.085        0.3           5             0.029286
              0.08625       0.08625         0.3           5             0.029286
               0.0875        0.0875         0.3           5             0.029286
              0.08875       0.08875         0.3           5             0.029286
                  0.09          0.09        0.3           5             0.029286
              0.09125       0.09125         0.3           5             0.029286
               0.0925        0.0925         0.3           5             0.029286
                 0.095         0.095        0.3           5             0.029286
                    0.1           0.1       0.3           5             0.029286
                 0.105         0.105        0.3           5             0.029286
                  0.11          0.11        0.3           5             0.029286
                  0.12          0.12        0.3           5             0.029286

One interesting use for MBS is a unique financing tool known
as the dollar-roll. Essentially this is how a dollar-roll
works. The owner of a MBS sells the pool to a second party,
typically a securities dealer. At the same time the sale is
made, a contract is made whereby the second party agrees to
sell back to the original owner a substantially similar MBS
for a specified price and at a specified time. The difference
in price between the sale and the repurchase price is
generally referred to as the drop. Under standard accounting
proceedures, these transactions are not considered sales, but
as financing. Hence the drop is not treated as a profit or
loss, but as interest. In fact no gains or losses on the sale
of the securities are registered the entire process is
considered a financing technique. Dealers like to use this
type of financing because it allows them to borrow a security
that they may need for other reasons and they can then return
a similar but not identical security.
                              FIXED RATE MBS: WORK AREA

On the following page you will find a model for fixed rate mortgage
pools. The inputs for this model are simple. You must input the coupon
coupon rate, the current principal balance of the pool, the percentage
of PSA at which the pool is expected to prepay, the agency that is the
pools guarantor, and the number of months until maturity on the
pool. If you know the price you can solve for the yield. If you know
the yield the model will solve for a price.

The model will return the price or yield of the security, plus it
will allow you to see the cash flows received by the pool owner.

                                     Model that solves for Price or yield

Inputs:

                     Principle       Remaining
    Agency           Balance          Months                 PSA         Coupon           Servicing

       0                 $100,000        360                100%         10.00%            0.50%

                                                   To solve for the yield hit CTRL-M

0 = Conventional
1 = GNMA
2 = FNMA
3 = FHLMC

Output:
             Principle                           Interest
             Received                           Received                          Price

           $100,000.00                         $116,642.09                   $110,298.04
                                             Beginning                     Mortgage
                                     Month    Balance    CPR      SMM      Payment
                                       1     $100,000    0.2%   0.000167   $877.57
                                       2      $99,939    0.4%   0.000334   $877.43
                                       3      $99,861    0.6%   0.000501   $877.13
                                       4      $99,766    0.8%   0.000669   $876.69
                                       5      $99,654    1.0%   0.000837   $876.11
                                       6      $99,525    1.2%   0.001006   $875.37
                                       7      $99,379    1.4%   0.001174   $874.49
                                       8      $99,216    1.6%   0.001343   $873.47
                                       9      $99,036    1.8%   0.001513   $872.29
                                      10      $98,839    2.0%   0.001682   $870.97
                                      11      $98,626    2.2%   0.001852   $869.51
                                      12      $98,396    2.4%   0.002022   $867.90
                                      13      $98,149    2.6%   0.002193   $866.14
                                      14      $97,886    2.8%   0.002364   $864.24
                                      15      $97,606    3.0%   0.002535   $862.20
                          Price       16      $97,310    3.2%   0.002707   $860.01
     Yield            (if known)      17      $96,997    3.4%   0.002878   $857.69
                                      18      $96,669    3.6%   0.003051   $855.22
    8.00%               $800,000      19      $96,324    3.8%   0.003223   $852.61
                                      20      $95,964    4.0%   0.003396   $849.86
                                      21      $95,588    4.2%   0.003569   $846.97
                                      22      $95,197    4.4%   0.003743   $843.95
                                      23      $94,790    4.6%   0.003917   $840.79
                                      24      $94,368    4.8%   0.004091   $837.50
                                      25      $93,931    5.0%   0.004265   $834.07
                                      26      $93,480    5.2%   0.004440   $830.52
                                      27      $93,013    5.4%   0.004615   $826.83
                                      28      $92,532    5.6%   0.004791   $823.01
                                      29      $92,038    5.8%   0.004967   $819.07
              Yield                   30      $91,529    6.0%   0.005143   $815.00
                                      31      $91,006    6.0%   0.005143   $810.81
             12.552%                  32      $90,486    6.0%   0.005143   $806.64
                                      33      $89,968    6.0%   0.005143   $802.49
This yield only applies when given    34      $89,453    6.0%   0.005143   $798.36
a price!                              35      $88,940    6.0%   0.005143   $794.26
                                      36      $88,430    6.0%   0.005143   $790.17
                                      37      $87,922    6.0%   0.005143   $786.11
38   $87,417   6.0%   0.005143   $782.07
39   $86,914   6.0%   0.005143   $778.04
40   $86,413   6.0%   0.005143   $774.04
41   $85,915   6.0%   0.005143   $770.06
42   $85,420   6.0%   0.005143   $766.10
43   $84,926   6.0%   0.005143   $762.16
44   $84,435   6.0%   0.005143   $758.24
45   $83,947   6.0%   0.005143   $754.34
46   $83,460   6.0%   0.005143   $750.46
47   $82,977   6.0%   0.005143   $746.60
48   $82,495   6.0%   0.005143   $742.76
49   $82,016   6.0%   0.005143   $738.94
50   $81,539   6.0%   0.005143   $735.14
51   $81,064   6.0%   0.005143   $731.36
52   $80,591   6.0%   0.005143   $727.60
53   $80,121   6.0%   0.005143   $723.86
54   $79,653   6.0%   0.005143   $720.13
55   $79,188   6.0%   0.005143   $716.43
56   $78,724   6.0%   0.005143   $712.75
57   $78,263   6.0%   0.005143   $709.08
58   $77,804   6.0%   0.005143   $705.43
59   $77,347   6.0%   0.005143   $701.81
60   $76,892   6.0%   0.005143   $698.20
61   $76,439   6.0%   0.005143   $694.61
62   $75,989   6.0%   0.005143   $691.03
63   $75,541   6.0%   0.005143   $687.48
64   $75,094   6.0%   0.005143   $683.94
65   $74,650   6.0%   0.005143   $680.43
66   $74,208   6.0%   0.005143   $676.93
67   $73,769   6.0%   0.005143   $673.45
68   $73,331   6.0%   0.005143   $669.98
69   $72,895   6.0%   0.005143   $666.54
70   $72,461   6.0%   0.005143   $663.11
71   $72,030   6.0%   0.005143   $659.70
72   $71,600   6.0%   0.005143   $656.30
73   $71,173   6.0%   0.005143   $652.93
74   $70,747   6.0%   0.005143   $649.57
75   $70,323   6.0%   0.005143   $646.23
76   $69,902   6.0%   0.005143   $642.91
77   $69,482   6.0%   0.005143   $639.60
78   $69,065   6.0%   0.005143   $636.31
79   $68,649   6.0%   0.005143   $633.04
 80   $68,235   6.0%   0.005143   $629.78
 81   $67,824   6.0%   0.005143   $626.54
 82   $67,414   6.0%   0.005143   $623.32
 83   $67,006   6.0%   0.005143   $620.12
 84   $66,600   6.0%   0.005143   $616.93
 85   $66,196   6.0%   0.005143   $613.75
 86   $65,793   6.0%   0.005143   $610.60
 87   $65,393   6.0%   0.005143   $607.46
 88   $64,994   6.0%   0.005143   $604.33
 89   $64,598   6.0%   0.005143   $601.22
 90   $64,203   6.0%   0.005143   $598.13
 91   $63,810   6.0%   0.005143   $595.06
 92   $63,419   6.0%   0.005143   $592.00
 93   $63,030   6.0%   0.005143   $588.95
 94   $62,642   6.0%   0.005143   $585.92
 95   $62,256   6.0%   0.005143   $582.91
 96   $61,872   6.0%   0.005143   $579.91
 97   $61,490   6.0%   0.005143   $576.93
 98   $61,110   6.0%   0.005143   $573.96
 99   $60,731   6.0%   0.005143   $571.01
100   $60,354   6.0%   0.005143   $568.07
101   $59,979   6.0%   0.005143   $565.15
102   $59,605   6.0%   0.005143   $562.24
103   $59,234   6.0%   0.005143   $559.35
104   $58,864   6.0%   0.005143   $556.48
105   $58,495   6.0%   0.005143   $553.61
106   $58,129   6.0%   0.005143   $550.77
107   $57,764   6.0%   0.005143   $547.93
108   $57,400   6.0%   0.005143   $545.12
109   $57,039   6.0%   0.005143   $542.31
110   $56,679   6.0%   0.005143   $539.52
111   $56,320   6.0%   0.005143   $536.75
112   $55,964   6.0%   0.005143   $533.99
113   $55,609   6.0%   0.005143   $531.24
114   $55,255   6.0%   0.005143   $528.51
115   $54,903   6.0%   0.005143   $525.79
116   $54,553   6.0%   0.005143   $523.09
117   $54,204   6.0%   0.005143   $520.40
118   $53,857   6.0%   0.005143   $517.72
119   $53,512   6.0%   0.005143   $515.06
120   $53,168   6.0%   0.005143   $512.41
121   $52,825   6.0%   0.005143   $509.77
122   $52,484   6.0%   0.005143   $507.15
123   $52,145   6.0%   0.005143   $504.54
124   $51,807   6.0%   0.005143   $501.95
125   $51,471   6.0%   0.005143   $499.37
126   $51,136   6.0%   0.005143   $496.80
127   $50,803   6.0%   0.005143   $494.24
128   $50,471   6.0%   0.005143   $491.70
129   $50,141   6.0%   0.005143   $489.17
130   $49,812   6.0%   0.005143   $486.66
131   $49,484   6.0%   0.005143   $484.15
132   $49,158   6.0%   0.005143   $481.66
133   $48,834   6.0%   0.005143   $479.19
134   $48,511   6.0%   0.005143   $476.72
135   $48,189   6.0%   0.005143   $474.27
136   $47,869   6.0%   0.005143   $471.83
137   $47,550   6.0%   0.005143   $469.41
138   $47,233   6.0%   0.005143   $466.99
139   $46,917   6.0%   0.005143   $464.59
140   $46,603   6.0%   0.005143   $462.20
141   $46,290   6.0%   0.005143   $459.82
142   $45,978   6.0%   0.005143   $457.46
143   $45,667   6.0%   0.005143   $455.11
144   $45,358   6.0%   0.005143   $452.76
145   $45,051   6.0%   0.005143   $450.44
146   $44,744   6.0%   0.005143   $448.12
147   $44,439   6.0%   0.005143   $445.81
148   $44,136   6.0%   0.005143   $443.52
149   $43,833   6.0%   0.005143   $441.24
150   $43,532   6.0%   0.005143   $438.97
151   $43,233   6.0%   0.005143   $436.71
152   $42,934   6.0%   0.005143   $434.47
153   $42,637   6.0%   0.005143   $432.23
154   $42,341   6.0%   0.005143   $430.01
155   $42,047   6.0%   0.005143   $427.80
156   $41,754   6.0%   0.005143   $425.60
157   $41,462   6.0%   0.005143   $423.41
158   $41,171   6.0%   0.005143   $421.23
159   $40,881   6.0%   0.005143   $419.07
160   $40,593   6.0%   0.005143   $416.91
161   $40,306   6.0%   0.005143   $414.77
162   $40,020   6.0%   0.005143   $412.63
163   $39,736   6.0%   0.005143   $410.51
164   $39,452   6.0%   0.005143   $408.40
165   $39,170   6.0%   0.005143   $406.30
166   $38,889   6.0%   0.005143   $404.21
167   $38,610   6.0%   0.005143   $402.13
168   $38,331   6.0%   0.005143   $400.06
169   $38,054   6.0%   0.005143   $398.01
170   $37,778   6.0%   0.005143   $395.96
171   $37,503   6.0%   0.005143   $393.92
172   $37,229   6.0%   0.005143   $391.90
173   $36,956   6.0%   0.005143   $389.88
174   $36,684   6.0%   0.005143   $387.88
175   $36,414   6.0%   0.005143   $385.88
176   $36,145   6.0%   0.005143   $383.90
177   $35,877   6.0%   0.005143   $381.92
178   $35,610   6.0%   0.005143   $379.96
179   $35,344   6.0%   0.005143   $378.00
180   $35,079   6.0%   0.005143   $376.06
181   $34,815   6.0%   0.005143   $374.13
182   $34,553   6.0%   0.005143   $372.20
183   $34,291   6.0%   0.005143   $370.29
184   $34,031   6.0%   0.005143   $368.38
185   $33,771   6.0%   0.005143   $366.49
186   $33,513   6.0%   0.005143   $364.60
187   $33,256   6.0%   0.005143   $362.73
188   $32,999   6.0%   0.005143   $360.86
189   $32,744   6.0%   0.005143   $359.01
190   $32,490   6.0%   0.005143   $357.16
191   $32,237   6.0%   0.005143   $355.32
192   $31,985   6.0%   0.005143   $353.50
193   $31,734   6.0%   0.005143   $351.68
194   $31,484   6.0%   0.005143   $349.87
195   $31,235   6.0%   0.005143   $348.07
196   $30,987   6.0%   0.005143   $346.28
197   $30,740   6.0%   0.005143   $344.50
198   $30,494   6.0%   0.005143   $342.73
199   $30,249   6.0%   0.005143   $340.96
200   $30,005   6.0%   0.005143   $339.21
201   $29,762   6.0%   0.005143   $337.47
202   $29,520   6.0%   0.005143   $335.73
203   $29,279   6.0%   0.005143   $334.00
204   $29,039   6.0%   0.005143   $332.29
205   $28,800   6.0%   0.005143   $330.58
206   $28,561   6.0%   0.005143   $328.88
207   $28,324   6.0%   0.005143   $327.19
208   $28,088   6.0%   0.005143   $325.50
209   $27,852   6.0%   0.005143   $323.83
210   $27,618   6.0%   0.005143   $322.16
211   $27,384   6.0%   0.005143   $320.51
212   $27,152   6.0%   0.005143   $318.86
213   $26,920   6.0%   0.005143   $317.22
214   $26,689   6.0%   0.005143   $315.59
215   $26,459   6.0%   0.005143   $313.96
216   $26,230   6.0%   0.005143   $312.35
217   $26,002   6.0%   0.005143   $310.74
218   $25,775   6.0%   0.005143   $309.14
219   $25,548   6.0%   0.005143   $307.55
220   $25,323   6.0%   0.005143   $305.97
221   $25,098   6.0%   0.005143   $304.40
222   $24,874   6.0%   0.005143   $302.83
223   $24,651   6.0%   0.005143   $301.28
224   $24,429   6.0%   0.005143   $299.73
225   $24,208   6.0%   0.005143   $298.18
226   $23,987   6.0%   0.005143   $296.65
227   $23,768   6.0%   0.005143   $295.13
228   $23,549   6.0%   0.005143   $293.61
229   $23,331   6.0%   0.005143   $292.10
230   $23,114   6.0%   0.005143   $290.60
231   $22,897   6.0%   0.005143   $289.10
232   $22,682   6.0%   0.005143   $287.61
233   $22,467   6.0%   0.005143   $286.13
234   $22,253   6.0%   0.005143   $284.66
235   $22,040   6.0%   0.005143   $283.20
236   $21,827   6.0%   0.005143   $281.74
237   $21,616   6.0%   0.005143   $280.29
238   $21,405   6.0%   0.005143   $278.85
239   $21,195   6.0%   0.005143   $277.42
240   $20,986   6.0%   0.005143   $275.99
241   $20,777   6.0%   0.005143   $274.57
242   $20,569   6.0%   0.005143   $273.16
243   $20,362   6.0%   0.005143   $271.75
244   $20,156   6.0%   0.005143   $270.36
245   $19,951   6.0%   0.005143   $268.97
246   $19,746   6.0%   0.005143   $267.58
247   $19,542   6.0%   0.005143   $266.21
248   $19,338   6.0%   0.005143   $264.84
249   $19,136   6.0%   0.005143   $263.48
250   $18,934   6.0%   0.005143   $262.12
251   $18,733   6.0%   0.005143   $260.77
252   $18,532   6.0%   0.005143   $259.43
253   $18,333   6.0%   0.005143   $258.10
254   $18,133   6.0%   0.005143   $256.77
255   $17,935   6.0%   0.005143   $255.45
256   $17,737   6.0%   0.005143   $254.14
257   $17,540   6.0%   0.005143   $252.83
258   $17,344   6.0%   0.005143   $251.53
259   $17,148   6.0%   0.005143   $250.23
260   $16,953   6.0%   0.005143   $248.95
261   $16,759   6.0%   0.005143   $247.67
262   $16,565   6.0%   0.005143   $246.39
263   $16,372   6.0%   0.005143   $245.13
264   $16,180   6.0%   0.005143   $243.87
265   $15,988   6.0%   0.005143   $242.61
266   $15,797   6.0%   0.005143   $241.36
267   $15,607   6.0%   0.005143   $240.12
268   $15,417   6.0%   0.005143   $238.89
269   $15,228   6.0%   0.005143   $237.66
270   $15,040   6.0%   0.005143   $236.44
271   $14,852   6.0%   0.005143   $235.22
272   $14,664   6.0%   0.005143   $234.01
273   $14,478   6.0%   0.005143   $232.81
274   $14,292   6.0%   0.005143   $231.61
275   $14,106   6.0%   0.005143   $230.42
276   $13,922   6.0%   0.005143   $229.23
277   $13,737   6.0%   0.005143   $228.06
278   $13,554   6.0%   0.005143   $226.88
279   $13,371   6.0%   0.005143   $225.72
280   $13,188   6.0%   0.005143   $224.55
281   $13,006   6.0%   0.005143   $223.40
282   $12,825   6.0%   0.005143   $222.25
283   $12,644   6.0%   0.005143   $221.11
284   $12,464   6.0%   0.005143   $219.97
285   $12,284   6.0%   0.005143   $218.84
286   $12,105   6.0%   0.005143   $217.71
287   $11,927   6.0%   0.005143   $216.59
288   $11,749   6.0%   0.005143   $215.48
289   $11,572   6.0%   0.005143   $214.37
290   $11,395   6.0%   0.005143   $213.27
291   $11,218   6.0%   0.005143   $212.17
292   $11,043   6.0%   0.005143   $211.08
293   $10,867   6.0%   0.005143   $210.00
294   $10,693   6.0%   0.005143   $208.92
295   $10,518   6.0%   0.005143   $207.84
296   $10,345   6.0%   0.005143   $206.77
297   $10,172   6.0%   0.005143   $205.71
298    $9,999   6.0%   0.005143   $204.65
299    $9,827   6.0%   0.005143   $203.60
300    $9,655   6.0%   0.005143   $202.55
301    $9,484   6.0%   0.005143   $201.51
302    $9,313   6.0%   0.005143   $200.47
303    $9,143   6.0%   0.005143   $199.44
304    $8,974   6.0%   0.005143   $198.42
305    $8,805   6.0%   0.005143   $197.40
306    $8,636   6.0%   0.005143   $196.38
307    $8,468   6.0%   0.005143   $195.37
308    $8,300   6.0%   0.005143   $194.37
309    $8,133   6.0%   0.005143   $193.37
310    $7,966   6.0%   0.005143   $192.37
311    $7,800   6.0%   0.005143   $191.38
312    $7,634   6.0%   0.005143   $190.40
313    $7,468   6.0%   0.005143   $189.42
314    $7,303   6.0%   0.005143   $188.44
315    $7,139   6.0%   0.005143   $187.48
316    $6,975   6.0%   0.005143   $186.51
317    $6,811   6.0%   0.005143   $185.55
318    $6,648   6.0%   0.005143   $184.60
319    $6,485   6.0%   0.005143   $183.65
320    $6,323   6.0%   0.005143   $182.70
321    $6,161   6.0%   0.005143   $181.76
322    $6,000   6.0%   0.005143   $180.83
323    $5,839   6.0%   0.005143   $179.90
324    $5,678   6.0%   0.005143   $178.97
325    $5,518   6.0%   0.005143   $178.05
326    $5,358   6.0%   0.005143   $177.14
327    $5,199   6.0%   0.005143   $176.23
328    $5,040   6.0%   0.005143   $175.32
329    $4,881   6.0%   0.005143   $174.42
330    $4,723   6.0%   0.005143   $173.52
331    $4,566   6.0%   0.005143   $172.63
332   $4,408   6.0%   0.005143   $171.74
333   $4,251   6.0%   0.005143   $170.86
334   $4,095   6.0%   0.005143   $169.98
335   $3,938   6.0%   0.005143   $169.11
336   $3,783   6.0%   0.005143   $168.24
337   $3,627   6.0%   0.005143   $167.37
338   $3,472   6.0%   0.005143   $166.51
339   $3,317   6.0%   0.005143   $165.65
340   $3,163   6.0%   0.005143   $164.80
341   $3,009   6.0%   0.005143   $163.95
342   $2,855   6.0%   0.005143   $163.11
343   $2,702   6.0%   0.005143   $162.27
344   $2,549   6.0%   0.005143   $161.44
345   $2,396   6.0%   0.005143   $160.61
346   $2,244   6.0%   0.005143   $159.78
347   $2,092   6.0%   0.005143   $158.96
348   $1,941   6.0%   0.005143   $158.14
349   $1,790   6.0%   0.005143   $157.33
350   $1,639   6.0%   0.005143   $156.52
351   $1,488   6.0%   0.005143   $155.71
352   $1,338   6.0%   0.005143   $154.91
353   $1,188   6.0%   0.005143   $154.12
354   $1,038   6.0%   0.005143   $153.32
355    $889    6.0%   0.005143   $152.54
356    $740    6.0%   0.005143   $151.75
357    $592    6.0%   0.005143   $150.97
358    $443    6.0%   0.005143   $150.19
359    $295    6.0%   0.005143   $149.42
360    $147    6.0%   0.005143   $148.65
Scheduled                            Service     Total       Total
Principal    Interest   Prepayment   Charge     Interest   Principal
 $44.24     $833.33       $16.67     $41.67    $791.67      $60.91
 $44.60     $832.83       $33.36     $41.64    $791.18      $77.96
 $44.96     $832.18       $50.05     $41.61    $790.57      $95.00
 $45.31     $831.38       $66.73     $41.57    $789.82     $112.03
 $45.65     $830.45       $83.39     $41.52    $788.93     $129.04
 $46.00     $829.38      $100.03     $41.47    $787.91     $146.03
 $46.33     $828.16      $116.64     $41.41    $786.75     $162.97
 $46.66     $826.80      $133.21     $41.34    $785.46     $179.87
 $46.99     $825.30      $149.72     $41.27    $784.04     $196.71
 $47.31     $823.66      $166.18     $41.18    $782.48     $213.49
 $47.62     $821.88      $182.58     $41.09    $780.79     $230.20
 $47.93     $819.96      $198.89     $41.00    $778.97     $246.83
 $48.23     $817.91      $215.13     $40.90    $777.01     $263.36
 $48.53     $815.71      $231.27     $40.79    $774.93     $279.80
 $48.82     $813.38      $247.31     $40.67    $772.71     $296.13
 $49.10     $810.91      $263.25     $40.55    $770.37     $312.35
 $49.38     $808.31      $279.06     $40.42    $767.90     $328.44
 $49.64     $805.57      $294.75     $40.28    $765.30     $344.40
 $49.90     $802.70      $310.31     $40.14    $762.57     $360.22
 $50.16     $799.70      $325.73     $39.99    $759.72     $375.89
 $50.40     $796.57      $341.00     $39.83    $756.74     $391.40
 $50.64     $793.31      $356.11     $39.67    $753.64     $406.75
 $50.87     $789.92      $371.06     $39.50    $750.42     $421.93
 $51.10     $786.40      $385.83     $39.32    $747.08     $436.93
 $51.31     $782.76      $400.43     $39.14    $743.62     $451.74
 $51.52     $779.00      $414.84     $38.95    $740.05     $466.36
 $51.72     $775.11      $429.05     $38.76    $736.35     $480.77
 $51.91     $771.10      $443.07     $38.56    $732.55     $494.97
 $52.09     $766.98      $456.87     $38.35    $728.63     $508.96
 $52.26     $762.74      $470.46     $38.14    $724.60     $522.73
 $52.43     $758.38      $467.77     $37.92    $720.46     $520.20
 $52.59     $754.05      $465.10     $37.70    $716.34     $517.69
 $52.76     $749.73      $462.43     $37.49    $712.25     $515.19
 $52.92     $745.44      $459.78     $37.27    $708.17     $512.71
 $53.09     $741.17      $457.15     $37.06    $704.11     $510.24
 $53.26     $736.91      $454.52     $36.85    $700.07     $507.78
 $53.43     $732.68      $451.91     $36.63    $696.05     $505.33
$53.59   $728.47   $449.31   $36.42   $692.05   $502.90
$53.76   $724.28   $446.72   $36.21   $688.07   $500.48
$53.93   $720.11   $444.15   $36.01   $684.11   $498.08
$54.10   $715.96   $441.58   $35.80   $680.16   $495.69
$54.27   $711.83   $439.03   $35.59   $676.24   $493.31
$54.44   $707.72   $436.50   $35.39   $672.33   $490.94
$54.61   $703.63   $433.97   $35.18   $668.45   $488.58
$54.79   $699.56   $431.46   $34.98   $664.58   $486.24
$54.96   $695.50   $428.96   $34.78   $660.73   $483.91
$55.13   $691.47   $426.47   $34.57   $656.90   $481.60
$55.30   $687.46   $423.99   $34.37   $653.09   $479.29
$55.48   $683.46   $421.52   $34.17   $649.29   $477.00
$55.65   $679.49   $419.07   $33.97   $645.51   $474.72
$55.83   $675.53   $416.63   $33.78   $641.76   $472.45
$56.00   $671.60   $414.20   $33.58   $638.02   $470.20
$56.18   $667.68   $411.78   $33.38   $634.29   $467.96
$56.36   $663.78   $409.37   $33.19   $630.59   $465.73
$56.53   $659.90   $406.97   $32.99   $626.90   $463.51
$56.71   $656.03   $404.59   $32.80   $623.23   $461.30
$56.89   $652.19   $402.21   $32.61   $619.58   $459.10
$57.07   $648.36   $399.85   $32.42   $615.95   $456.92
$57.25   $644.56   $397.50   $32.23   $612.33   $454.75
$57.43   $640.77   $395.16   $32.04   $608.73   $452.59
$57.61   $637.00   $392.83   $31.85   $605.15   $450.44
$57.79   $633.24   $390.52   $31.66   $601.58   $448.31
$57.97   $629.51   $388.21   $31.48   $598.03   $446.18
$58.16   $625.79   $385.91   $31.29   $594.50   $444.07
$58.34   $622.09   $383.63   $31.10   $590.98   $441.97
$58.52   $618.40   $381.35   $30.92   $587.48   $439.88
$58.71   $614.74   $379.09   $30.74   $584.00   $437.80
$58.89   $611.09   $376.84   $30.55   $580.54   $435.73
$59.08   $607.46   $374.60   $30.37   $577.09   $433.67
$59.26   $603.84   $372.37   $30.19   $573.65   $431.63
$59.45   $600.25   $370.14   $30.01   $570.24   $429.59
$59.64   $596.67   $367.93   $29.83   $566.83   $427.57
$59.82   $593.10   $365.73   $29.66   $563.45   $425.56
$60.01   $589.56   $363.54   $29.48   $560.08   $423.56
$60.20   $586.03   $361.36   $29.30   $556.73   $421.57
$60.39   $582.52   $359.20   $29.13   $553.39   $419.59
$60.58   $579.02   $357.04   $28.95   $550.07   $417.62
$60.77   $575.54   $354.89   $28.78   $546.76   $415.66
$60.96   $572.08   $352.75   $28.60   $543.47   $413.71
$61.15   $568.63   $350.62   $28.43   $540.20   $411.78
$61.35   $565.20   $348.50   $28.26   $536.94   $409.85
$61.54   $561.78   $346.39   $28.09   $533.69   $407.93
$61.73   $558.38   $344.29   $27.92   $530.46   $406.03
$61.93   $555.00   $342.20   $27.75   $527.25   $404.13
$62.12   $551.63   $340.13   $27.58   $524.05   $402.25
$62.32   $548.28   $338.06   $27.41   $520.86   $400.37
$62.52   $544.94   $336.00   $27.25   $517.69   $398.51
$62.71   $541.62   $333.94   $27.08   $514.54   $396.66
$62.91   $538.32   $331.90   $26.92   $511.40   $394.81
$63.11   $535.03   $329.87   $26.75   $508.27   $392.98
$63.31   $531.75   $327.85   $26.59   $505.16   $391.16
$63.51   $528.49   $325.84   $26.42   $502.07   $389.34
$63.71   $525.25   $323.83   $26.26   $498.98   $387.54
$63.91   $522.02   $321.84   $26.10   $495.92   $385.75
$64.11   $518.80   $319.85   $25.94   $492.86   $383.96
$64.31   $515.60   $317.88   $25.78   $489.82   $382.19
$64.51   $512.42   $315.91   $25.62   $486.80   $380.42
$64.71   $509.25   $313.95   $25.46   $483.78   $378.67
$64.92   $506.09   $312.01   $25.30   $480.79   $376.92
$65.12   $502.95   $310.07   $25.15   $477.80   $375.19
$65.33   $499.82   $308.14   $24.99   $474.83   $373.46
$65.53   $496.71   $306.21   $24.84   $471.88   $371.75
$65.74   $493.61   $304.30   $24.68   $468.93   $370.04
$65.95   $490.53   $302.40   $24.53   $466.00   $368.34
$66.15   $487.46   $300.50   $24.37   $463.09   $366.66
$66.36   $484.41   $298.62   $24.22   $460.19   $364.98
$66.57   $481.36   $296.74   $24.07   $457.30   $363.31
$66.78   $478.34   $294.87   $23.92   $454.42   $361.65
$66.99   $475.32   $293.01   $23.77   $451.56   $360.00
$67.20   $472.32   $291.15   $23.62   $448.71   $358.35
$67.41   $469.34   $289.31   $23.47   $445.87   $356.72
$67.62   $466.36   $287.47   $23.32   $443.05   $355.10
$67.84   $463.40   $285.65   $23.17   $440.23   $353.48
$68.05   $460.46   $283.83   $23.02   $437.44   $351.88
$68.27   $457.53   $282.02   $22.88   $434.65   $350.28
$68.48   $454.61   $280.21   $22.73   $431.88   $348.69
$68.70   $451.70   $278.42   $22.59   $429.12   $347.12
$68.91   $448.81   $276.63   $22.44   $426.37   $345.55
$69.13   $445.93   $274.86   $22.30   $423.63   $343.98
$69.35   $443.06   $273.08   $22.15   $420.91   $342.43
$69.56   $440.21   $271.32   $22.01   $418.20   $340.89
$69.78   $437.37   $269.57   $21.87   $415.50   $339.35
$70.00   $434.54   $267.82   $21.73   $412.81   $337.82
$70.22   $431.73   $266.08   $21.59   $410.14   $336.31
$70.44   $428.92   $264.35   $21.45   $407.48   $334.80
$70.67   $426.13   $262.63   $21.31   $404.83   $333.30
$70.89   $423.36   $260.91   $21.17   $402.19   $331.80
$71.11   $420.59   $259.21   $21.03   $399.56   $330.32
$71.34   $417.84   $257.51   $20.89   $396.95   $328.84
$71.56   $415.10   $255.81   $20.75   $394.34   $327.37
$71.79   $412.37   $254.13   $20.62   $391.75   $325.91
$72.01   $409.65   $252.45   $20.48   $389.17   $324.46
$72.24   $406.95   $250.78   $20.35   $386.60   $323.02
$72.47   $404.26   $249.12   $20.21   $384.04   $321.58
$72.69   $401.58   $247.46   $20.08   $381.50   $320.16
$72.92   $398.91   $245.82   $19.95   $378.96   $318.74
$73.15   $396.25   $244.18   $19.81   $376.44   $317.33
$73.38   $393.61   $242.54   $19.68   $373.93   $315.93
$73.61   $390.98   $240.92   $19.55   $371.43   $314.53
$73.84   $388.36   $239.30   $19.42   $368.94   $313.14
$74.08   $385.75   $237.69   $19.29   $366.46   $311.76
$74.31   $383.15   $236.08   $19.16   $363.99   $310.39
$74.54   $380.56   $234.48   $19.03   $361.53   $309.03
$74.78   $377.99   $232.89   $18.90   $359.09   $307.67
$75.01   $375.42   $231.31   $18.77   $356.65   $306.32
$75.25   $372.87   $229.73   $18.64   $354.23   $304.98
$75.49   $370.33   $228.16   $18.52   $351.81   $303.65
$75.72   $367.80   $226.60   $18.39   $349.41   $302.33
$75.96   $365.28   $225.04   $18.26   $347.01   $301.01
$76.20   $362.77   $223.50   $18.14   $344.63   $299.70
$76.44   $360.27   $221.95   $18.01   $342.26   $298.39
$76.68   $357.79   $220.42   $17.89   $339.90   $297.10
$76.92   $355.31   $218.89   $17.77   $337.54   $295.81
$77.17   $352.84   $217.37   $17.64   $335.20   $294.53
$77.41   $350.39   $215.85   $17.52   $332.87   $293.26
$77.65   $347.95   $214.34   $17.40   $330.55   $291.99
$77.90   $345.51   $212.84   $17.28   $328.24   $290.73
$78.14   $343.09   $211.34   $17.15   $325.94   $289.48
$78.39   $340.68   $209.85   $17.03   $323.64   $288.24
$78.63   $338.28   $208.37   $16.91   $321.36   $287.00
$78.88   $335.88   $206.89   $16.79   $319.09   $285.77
$79.13   $333.50   $205.42   $16.68   $316.83   $284.55
$79.38   $331.13   $203.95   $16.56   $314.58   $283.33
$79.63   $328.77   $202.50   $16.44   $312.33   $282.12
$79.88   $326.42   $201.04   $16.32   $310.10   $280.92
$80.13   $324.08   $199.60   $16.20   $307.87   $279.73
$80.38   $321.75   $198.16   $16.09   $305.66   $278.54
$80.64   $319.43   $196.72   $15.97   $303.46   $277.36
$80.89   $317.12   $195.30   $15.86   $301.26   $276.19
$81.15   $314.81   $193.87   $15.74   $299.07   $275.02
$81.40   $312.52   $192.46   $15.63   $296.90   $273.86
$81.66   $310.24   $191.05   $15.51   $294.73   $272.70
$81.91   $307.97   $189.64   $15.40   $292.57   $271.56
$82.17   $305.70   $188.25   $15.29   $290.42   $270.42
$82.43   $303.45   $186.85   $15.17   $288.28   $269.28
$82.69   $301.21   $185.47   $15.06   $286.15   $268.16
$82.95   $298.97   $184.09   $14.95   $284.02   $267.04
$83.21   $296.75   $182.71   $14.84   $281.91   $265.92
$83.47   $294.53   $181.34   $14.73   $279.80   $264.82
$83.74   $292.32   $179.98   $14.62   $277.71   $263.72
$84.00   $290.13   $178.62   $14.51   $275.62   $262.62
$84.26   $287.94   $177.27   $14.40   $273.54   $261.53
$84.53   $285.76   $175.92   $14.29   $271.47   $260.45
$84.79   $283.59   $174.58   $14.18   $269.41   $259.38
$85.06   $281.43   $173.25   $14.07   $267.35   $258.31
$85.33   $279.27   $171.92   $13.96   $265.31   $257.25
$85.60   $277.13   $170.59   $13.86   $263.27   $256.19
$85.87   $274.99   $169.27   $13.75   $261.25   $255.14
$86.14   $272.87   $167.96   $13.64   $259.23   $254.10
$86.41   $270.75   $166.65   $13.54   $257.21   $253.06
$86.68   $268.64   $165.35   $13.43   $255.21   $252.03
$86.95   $266.54   $164.05   $13.33   $253.22   $251.01
$87.23   $264.45   $162.76   $13.22   $251.23   $249.99
$87.50   $262.37   $161.47   $13.12   $249.25   $248.97
$87.78   $260.29   $160.19   $13.01   $247.28   $247.97
$88.05   $258.23   $158.91   $12.91   $245.31   $246.97
$88.33   $256.17   $157.64   $12.81   $243.36   $245.97
$88.61   $254.12   $156.38   $12.71   $241.41   $244.98
$88.89   $252.08   $155.11   $12.60   $239.47   $244.00
$89.17   $250.04   $153.86   $12.50   $237.54   $243.03
$89.45   $248.02   $152.61   $12.40   $235.62   $242.06
$89.73   $246.00   $151.36   $12.30   $233.70   $241.09
$90.01   $243.99   $150.12   $12.20   $231.79   $240.13
$90.30   $241.99   $148.88   $12.10   $229.89   $239.18
$90.58   $240.00   $147.65   $12.00   $228.00   $238.23
 $90.86   $238.01   $146.42   $11.90   $226.11   $237.29
 $91.15   $236.03   $145.20   $11.80   $224.23   $236.35
 $91.44   $234.07   $143.99   $11.70   $222.36   $235.42
 $91.73   $232.10   $142.77   $11.61   $220.50   $234.50
 $92.01   $230.15   $141.57   $11.51   $218.64   $233.58
 $92.30   $228.20   $140.36   $11.41   $216.79   $232.67
 $92.59   $226.26   $139.17   $11.31   $214.95   $231.76
 $92.89   $224.33   $137.97   $11.22   $213.12   $230.86
 $93.18   $222.41   $136.78   $11.12   $211.29   $229.96
 $93.47   $220.49   $135.60   $11.02   $209.47   $229.07
 $93.77   $218.58   $134.42   $10.93   $207.65   $228.18
 $94.06   $216.68   $133.24   $10.83   $205.85   $227.30
 $94.36   $214.79   $132.07   $10.74   $204.05   $226.43
 $94.65   $212.90   $130.91   $10.65   $202.26   $225.56
 $94.95   $211.02   $129.75   $10.55   $200.47   $224.70
 $95.25   $209.15   $128.59   $10.46   $198.69   $223.84
 $95.55   $207.28   $127.44   $10.36   $196.92   $222.99
 $95.85   $205.43   $126.29   $10.27   $195.15   $222.14
 $96.15   $203.57   $125.14   $10.18   $193.40   $221.30
 $96.46   $201.73   $124.00   $10.09   $191.64   $220.46
 $96.76   $199.89   $122.87    $9.99   $189.90   $219.63
 $97.06   $198.06   $121.74    $9.90   $188.16   $218.80
 $97.37   $196.24   $120.61    $9.81   $186.43   $217.98
 $97.68   $194.42   $119.49    $9.72   $184.70   $217.16
 $97.98   $192.61   $118.37    $9.63   $182.98   $216.35
 $98.29   $190.81   $117.26    $9.54   $181.27   $215.55
 $98.60   $189.01   $116.14    $9.45   $179.56   $214.75
 $98.91   $187.22   $115.04    $9.36   $177.86   $213.95
 $99.22   $185.44   $113.94    $9.27   $176.17   $213.16
 $99.53   $183.67   $112.84    $9.18   $174.48   $212.37
 $99.85   $181.90   $111.75    $9.09   $172.80   $211.59
$100.16   $180.13   $110.66    $9.01   $171.13   $210.82
$100.48   $178.38   $109.57    $8.92   $169.46   $210.05
$100.79   $176.62   $108.49    $8.83   $167.79   $209.28
$101.11   $174.88   $107.41    $8.74   $166.14   $208.52
$101.43   $173.14   $106.34    $8.66   $164.49   $207.76
$101.75   $171.41   $105.27    $8.57   $162.84   $207.01
$102.07   $169.69   $104.20    $8.48   $161.20   $206.27
$102.39   $167.97   $103.14    $8.40   $159.57   $205.53
$102.71   $166.26   $102.08    $8.31   $157.94   $204.79
$103.04   $164.55   $101.02    $8.23   $156.32   $204.06
$103.36   $162.85    $99.97    $8.14   $154.71   $203.33
$103.68   $161.15   $98.92   $8.06   $153.10   $202.61
$104.01   $159.47   $97.88   $7.97   $151.49   $201.89
$104.34   $157.78   $96.84   $7.89   $149.89   $201.18
$104.67   $156.11   $95.80   $7.81   $148.30   $200.47
$105.00   $154.44   $94.77   $7.72   $146.71   $199.77
$105.33   $152.77   $93.74   $7.64   $145.13   $199.07
$105.66   $151.11   $92.72   $7.56   $143.56   $198.38
$105.99   $149.46   $91.70   $7.47   $141.99   $197.69
$106.32   $147.81   $90.68   $7.39   $140.42   $197.00
$106.66   $146.17   $89.66   $7.31   $138.86   $196.32
$106.99   $144.53   $88.65   $7.23   $137.31   $195.65
$107.33   $142.90   $87.64   $7.15   $135.76   $194.97
$107.67   $141.28   $86.64   $7.06   $134.21   $194.31
$108.01   $139.66   $85.64   $6.98   $132.68   $193.65
$108.35   $138.05   $84.64   $6.90   $131.14   $192.99
$108.69   $136.44   $83.64   $6.82   $129.62   $192.33
$109.03   $134.83   $82.65   $6.74   $128.09   $191.69
$109.37   $133.24   $81.67   $6.66   $126.58   $191.04
$109.72   $131.65   $80.68   $6.58   $125.06   $190.40
$110.06   $130.06   $79.70   $6.50   $123.56   $189.77
$110.41   $128.48   $78.72   $6.42   $122.05   $189.13
$110.76   $126.90   $77.75   $6.35   $120.56   $188.51
$111.11   $125.33   $76.78   $6.27   $119.06   $187.88
$111.46   $123.76   $75.81   $6.19   $117.58   $187.27
$111.81   $122.20   $74.84   $6.11   $116.09   $186.65
$112.16   $120.65   $73.88   $6.03   $114.62   $186.04
$112.51   $119.10   $72.92   $5.95   $113.14   $185.44
$112.87   $117.55   $71.97   $5.88   $111.68   $184.83
$113.22   $116.01   $71.02   $5.80   $110.21   $184.24
$113.58   $114.48   $70.07   $5.72   $108.75   $183.64
$113.94   $112.95   $69.12   $5.65   $107.30   $183.06
$114.29   $111.42   $68.18   $5.57   $105.85   $182.47
$114.65   $109.90   $67.24   $5.50   $104.41   $181.89
$115.01   $108.39   $66.30   $5.42   $102.97   $181.31
$115.38   $106.87   $65.37   $5.34   $101.53   $180.74
$115.74   $105.37   $64.43   $5.27   $100.10   $180.17
$116.10   $103.87   $63.51   $5.19    $98.67   $179.61
$116.47   $102.37   $62.58   $5.12    $97.25   $179.05
$116.84   $100.88   $61.66   $5.04    $95.83   $178.49
$117.20    $99.39   $60.74   $4.97    $94.42   $177.94
$117.57    $97.91   $59.82   $4.90    $93.01   $177.39
$117.94    $96.43   $58.91   $4.82    $91.61   $176.85
$118.31   $94.96   $57.99   $4.75   $90.21   $176.31
$118.69   $93.49   $57.09   $4.67   $88.81   $175.77
$119.06   $92.02   $56.18   $4.60   $87.42   $175.24
$119.43   $90.56   $55.28   $4.53   $86.03   $174.71
$119.81   $89.11   $54.38   $4.46   $84.65   $174.19
$120.19   $87.65   $53.48   $4.38   $83.27   $173.67
$120.57   $86.21   $52.58   $4.31   $81.90   $173.15
$120.95   $84.76   $51.69   $4.24   $80.53   $172.64
$121.33   $83.32   $50.80   $4.17   $79.16   $172.13
$121.71   $81.89   $49.91   $4.09   $77.80   $171.62
$122.09   $80.46   $49.03   $4.02   $76.44   $171.12
$122.48   $79.03   $48.15   $3.95   $75.08   $170.62
$122.86   $77.61   $47.27   $3.88   $73.73   $170.13
$123.25   $76.19   $46.39   $3.81   $72.38   $169.64
$123.64   $74.78   $45.52   $3.74   $71.04   $169.15
$124.02   $73.37   $44.64   $3.67   $69.70   $168.67
$124.41   $71.97   $43.77   $3.60   $68.37   $168.19
$124.81   $70.56   $42.91   $3.53   $67.04   $167.71
$125.20   $69.17   $42.04   $3.46   $65.71   $167.24
$125.59   $67.77   $41.18   $3.39   $64.38   $166.77
$125.99   $66.38   $40.32   $3.32   $63.06   $166.31
$126.39   $65.00   $39.46   $3.25   $61.75   $165.85
$126.78   $63.62   $38.61   $3.18   $60.43   $165.39
$127.18   $62.24   $37.76   $3.11   $59.13   $164.94
$127.58   $60.86   $36.91   $3.04   $57.82   $164.49
$127.98   $59.49   $36.06   $2.97   $56.52   $164.04
$128.39   $58.12   $35.21   $2.91   $55.22   $163.60
$128.79   $56.76   $34.37   $2.84   $53.92   $163.16
$129.20   $55.40   $33.53   $2.77   $52.63   $162.72
$129.60   $54.05   $32.69   $2.70   $51.34   $162.29
$130.01   $52.69   $31.85   $2.63   $50.06   $161.86
$130.42   $51.34   $31.02   $2.57   $48.78   $161.44
$130.83   $50.00   $30.18   $2.50   $47.50   $161.01
$131.24   $48.66   $29.35   $2.43   $46.22   $160.60
$131.66   $47.32   $28.53   $2.37   $44.95   $160.18
$132.07   $45.98   $27.70   $2.30   $43.69   $159.77
$132.49   $44.65   $26.88   $2.23   $42.42   $159.36
$132.90   $43.32   $26.05   $2.17   $41.16   $158.96
$133.32   $42.00   $25.24   $2.10   $39.90   $158.56
$133.74   $40.68   $24.42   $2.03   $38.64   $158.16
$134.16   $39.36   $23.60   $1.97   $37.39   $157.76
$134.58   $38.05   $22.79   $1.90   $36.14   $157.37
$135.01   $36.73   $21.98    $1.84   $34.90   $156.98
$135.43   $35.43   $21.17    $1.77   $33.66   $156.60
$135.86   $34.12   $20.36    $1.71   $32.42   $156.22
$136.29   $32.82   $19.55    $1.64   $31.18   $155.84
$136.71   $31.52   $18.75    $1.58   $29.95   $155.47
$137.14   $30.23   $17.95    $1.51   $28.71   $155.09
$137.58   $28.93   $17.15    $1.45   $27.49   $154.73
$138.01   $27.64   $16.35    $1.38   $26.26   $154.36
$138.44   $26.36   $15.55    $1.32   $25.04   $154.00
$138.88   $25.07   $14.76    $1.25   $23.82   $153.64
$139.32   $23.79   $13.97    $1.19   $22.60   $153.28
$139.76   $22.52   $13.18    $1.13   $21.39   $152.93
$140.20   $21.24   $12.39    $1.06   $20.18   $152.58
$140.64   $19.97   $11.60    $1.00   $18.97   $152.24
$141.08   $18.70   $10.82    $0.94   $17.77   $151.90
$141.52   $17.44   $10.03    $0.87   $16.56   $151.56
$141.97   $16.17    $9.25    $0.81   $15.36   $151.22
$142.42   $14.91    $8.47    $0.75   $14.17   $150.89
$142.86   $13.66    $7.69    $0.68   $12.97   $150.56
$143.31   $12.40    $6.92    $0.62   $11.78   $150.23
$143.76   $11.15    $6.14    $0.56   $10.59   $149.91
$144.22    $9.90    $5.37    $0.49    $9.40   $149.58
$144.67    $8.65    $4.60    $0.43    $8.22   $149.27
$145.13    $7.41    $3.83    $0.37    $7.04   $148.95
$145.58    $6.17    $3.06    $0.31    $5.86   $148.64
$146.04    $4.93    $2.29    $0.25    $4.68   $148.33
$146.50    $3.69    $1.53    $0.18    $3.51   $148.03
$146.96    $2.46    $0.76    $0.12    $2.34   $147.72
$147.42    $1.23   ($0.00)   $0.06    $1.17   $147.42
                Delay       0       Yield Calculation     ($716,412)
                                    discount rate            1.0460%
  Total      Ending       PV of            Month        With Delay
Cash Flow   Balance     Cash Flow             0              0
 $852.58    $99,939      $846.93              1              1
 $869.14    $99,861      $857.67              2              2
 $885.57    $99,766      $868.09              3              3
 $901.85    $99,654      $878.19              4              4
 $917.97    $99,525      $887.98              5              5
 $933.93    $99,379      $897.43              6              6
 $949.72    $99,216      $906.56              7              7
 $965.33    $99,036      $915.36              8              8
 $980.75    $98,839      $923.82              9              9
 $995.97    $98,626      $931.94             10             10
$1,010.99   $98,396      $939.73             11             11
$1,025.79   $98,149      $947.18             12             12
$1,040.37   $97,886      $954.28             13             13
$1,054.73   $97,606      $961.04             14             14
$1,068.84   $97,310      $967.45             15             15
$1,082.71   $96,997      $973.51             16             16
$1,096.33   $96,669      $979.23             17             17
$1,109.69   $96,324      $984.60             18             18
$1,122.79   $95,964      $989.62             19             19
$1,135.60   $95,588      $994.29             20             20
$1,148.14   $95,197      $998.61             21             21
$1,160.40   $94,790     $1,002.58            22             22
$1,172.35   $94,368     $1,006.21            23             23
$1,184.01   $93,931     $1,009.48            24             24
$1,195.36   $93,480     $1,012.41            25             25
$1,206.40   $93,013     $1,015.00            26             26
$1,217.12   $92,532     $1,017.24            27             27
$1,227.52   $92,038     $1,019.13            28             28
$1,237.59   $91,529     $1,020.69            29             29
$1,247.33   $91,006     $1,021.90            30             30
$1,240.66   $90,486     $1,009.71            31             31
$1,234.04   $89,968      $997.67             32             32
$1,227.44   $89,453      $985.76             33             33
$1,220.88   $88,940      $974.00             34             34
$1,214.35   $88,430      $962.37             35             35
$1,207.85   $87,922      $950.88             36             36
$1,201.38   $87,417      $939.53             37             37
$1,194.95   $86,914   $928.31   38   38
$1,188.55   $86,413   $917.23   39   39
$1,182.18   $85,915   $906.27   40   40
$1,175.85   $85,420   $895.44   41   41
$1,169.54   $84,926   $884.74   42   42
$1,163.27   $84,435   $874.17   43   43
$1,157.03   $83,947   $863.72   44   44
$1,150.82   $83,460   $853.40   45   45
$1,144.64   $82,977   $843.20   46   46
$1,138.49   $82,495   $833.11   47   47
$1,132.38   $82,016   $823.15   48   48
$1,126.29   $81,539   $813.30   49   49
$1,120.24   $81,064   $803.57   50   50
$1,114.21   $80,591   $793.96   51   51
$1,108.21   $80,121   $784.46   52   52
$1,102.25   $79,653   $775.07   53   53
$1,096.31   $79,188   $765.79   54   54
$1,090.41   $78,724   $756.62   55   55
$1,084.53   $78,263   $747.56   56   56
$1,078.69   $77,804   $738.60   57   57
$1,072.87   $77,347   $729.75   58   58
$1,067.08   $76,892   $721.01   59   59
$1,061.32   $76,439   $712.37   60   60
$1,055.59   $75,989   $703.83   61   61
$1,049.89   $75,541   $695.39   62   62
$1,044.21   $75,094   $687.05   63   63
$1,038.57   $74,650   $678.81   64   64
$1,032.95   $74,208   $670.67   65   65
$1,027.36   $73,769   $662.62   66   66
$1,021.80   $73,331   $654.67   67   67
$1,016.27   $72,895   $646.82   68   68
$1,010.76   $72,461   $639.05   69   69
$1,005.28   $72,030   $631.38   70   70
 $999.83    $71,600   $623.80   71   71
 $994.41    $71,173   $616.30   72   72
 $989.01    $70,747   $608.90   73   73
 $983.64    $70,323   $601.58   74   74
 $978.29    $69,902   $594.35   75   75
 $972.98    $69,482   $587.21   76   76
 $967.69    $69,065   $580.15   77   77
 $962.42    $68,649   $573.17   78   78
 $957.18    $68,235   $566.27   79   79
$951.97   $67,824   $559.46    80    80
$946.79   $67,414   $552.73    81    81
$941.63   $67,006   $546.07    82    82
$936.49   $66,600   $539.50    83    83
$931.38   $66,196   $533.00    84    84
$926.30   $65,793   $526.58    85    85
$921.24   $65,393   $520.24    86    86
$916.21   $64,994   $513.97    87    87
$911.20   $64,598   $507.78    88    88
$906.21   $64,203   $501.65    89    89
$901.25   $63,810   $495.60    90    90
$896.32   $63,419   $489.63    91    91
$891.41   $63,030   $483.72    92    92
$886.52   $62,642   $477.88    93    93
$881.66   $62,256   $472.11    94    94
$876.82   $61,872   $466.41    95    95
$872.01   $61,490   $460.78    96    96
$867.22   $61,110   $455.22    97    97
$862.45   $60,731   $449.72    98    98
$857.71   $60,354   $444.28    99    99
$852.99   $59,979   $438.91   100   100
$848.30   $59,605   $433.60   101   101
$843.62   $59,234   $428.36   102   102
$838.97   $58,864   $423.18   103   103
$834.35   $58,495   $418.06   104   104
$829.74   $58,129   $413.00   105   105
$825.16   $57,764   $408.00   106   106
$820.60   $57,400   $403.06   107   107
$816.07   $57,039   $398.17   108   108
$811.55   $56,679   $393.35   109   109
$807.06   $56,320   $388.58   110   110
$802.59   $55,964   $383.87   111   111
$798.14   $55,609   $379.21   112   112
$793.72   $55,255   $374.61   113   113
$789.31   $54,903   $370.07   114   114
$784.93   $54,553   $365.58   115   115
$780.57   $54,204   $361.14   116   116
$776.23   $53,857   $356.75   117   117
$771.91   $53,512   $352.42   118   118
$767.62   $53,168   $348.13   119   119
$763.34   $52,825   $343.90   120   120
$759.09   $52,484   $339.72   121   121
$754.85   $52,145   $335.59   122   122
$750.64   $51,807   $331.51   123   123
$746.45   $51,471   $327.47   124   124
$742.27   $51,136   $323.48   125   125
$738.12   $50,803   $319.54   126   126
$733.99   $50,471   $315.65   127   127
$729.88   $50,141   $311.80   128   128
$725.79   $49,812   $308.00   129   129
$721.72   $49,484   $304.25   130   130
$717.67   $49,158   $300.54   131   131
$713.63   $48,834   $296.87   132   132
$709.62   $48,511   $293.24   133   133
$705.63   $48,189   $289.66   134   134
$701.66   $47,869   $286.13   135   135
$697.70   $47,550   $282.63   136   136
$693.77   $47,233   $279.17   137   137
$689.85   $46,917   $275.76   138   138
$685.96   $46,603   $272.39   139   139
$682.08   $46,290   $269.05   140   140
$678.22   $45,978   $265.76   141   141
$674.38   $45,667   $262.51   142   142
$670.56   $45,358   $259.29   143   143
$666.76   $45,051   $256.11   144   144
$662.98   $44,744   $252.97   145   145
$659.21   $44,439   $249.87   146   146
$655.46   $44,136   $246.80   147   147
$651.73   $43,833   $243.77   148   148
$648.02   $43,532   $240.78   149   149
$644.33   $43,233   $237.82   150   150
$640.65   $42,934   $234.90   151   151
$637.00   $42,637   $232.01   152   152
$633.36   $42,341   $229.16   153   153
$629.73   $42,047   $226.34   154   154
$626.13   $41,754   $223.55   155   155
$622.54   $41,462   $220.80   156   156
$618.97   $41,171   $218.08   157   157
$615.42   $40,881   $215.39   158   158
$611.88   $40,593   $212.74   159   159
$608.36   $40,306   $210.11   160   160
$604.86   $40,020   $207.52   161   161
$601.38   $39,736   $204.96   162   162
$597.91   $39,452   $202.43   163   163
$594.46   $39,170   $199.93   164   164
$591.02   $38,889   $197.45   165   165
$587.60   $38,610   $195.01   166   166
$584.20   $38,331   $192.60   167   167
$580.81   $38,054   $190.21   168   168
$577.44   $37,778   $187.86   169   169
$574.09   $37,503   $185.53   170   170
$570.75   $37,229   $183.23   171   171
$567.43   $36,956   $180.96   172   172
$564.13   $36,684   $178.71   173   173
$560.84   $36,414   $176.49   174   174
$557.56   $36,145   $174.30   175   175
$554.30   $35,877   $172.13   176   176
$551.06   $35,610   $169.99   177   177
$547.83   $35,344   $167.88   178   178
$544.62   $35,079   $165.79   179   179
$541.42   $34,815   $163.72   180   180
$538.24   $34,553   $161.68   181   181
$535.07   $34,291   $159.67   182   182
$531.92   $34,031   $157.68   183   183
$528.79   $33,771   $155.71   184   184
$525.66   $33,513   $153.76   185   185
$522.56   $33,256   $151.84   186   186
$519.46   $32,999   $149.95   187   187
$516.39   $32,744   $148.07   188   188
$513.32   $32,490   $146.22   189   189
$510.28   $32,237   $144.39   190   190
$507.24   $31,985   $142.58   191   191
$504.22   $31,734   $140.79   192   192
$501.22   $31,484   $139.02   193   193
$498.22   $31,235   $137.28   194   194
$495.25   $30,987   $135.55   195   195
$492.28   $30,740   $133.85   196   196
$489.33   $30,494   $132.17   197   197
$486.40   $30,249   $130.50   198   198
$483.48   $30,005   $128.86   199   199
$480.57   $29,762   $127.24   200   200
$477.67   $29,520   $125.63   201   201
$474.79   $29,279   $124.05   202   202
$471.92   $29,039   $122.48   203   203
$469.07   $28,800   $120.94   204   204
$466.23   $28,561   $119.41   205   205
$463.40   $28,324   $117.90   206   206
$460.59   $28,088   $116.41   207   207
$457.79   $27,852   $114.93   208   208
$455.00   $27,618   $113.47   209   209
$452.22   $27,384   $112.04   210   210
$449.46   $27,152   $110.61   211   211
$446.71   $26,920   $109.21   212   212
$443.97   $26,689   $107.82   213   213
$441.25   $26,459   $106.45   214   214
$438.54   $26,230   $105.10   215   215
$435.84   $26,002   $103.76   216   216
$433.15   $25,775   $102.43   217   217
$430.48   $25,548   $101.13   218   218
$427.82   $25,323    $99.84   219   219
$425.17   $25,098    $98.56   220   220
$422.53   $24,874    $97.30   221   221
$419.91   $24,651    $96.06   222   222
$417.29   $24,429    $94.83   223   223
$414.69   $24,208    $93.61   224   224
$412.10   $23,987    $92.41   225   225
$409.53   $23,768    $91.23   226   226
$406.96   $23,549    $90.05   227   227
$404.41   $23,331    $88.90   228   228
$401.86   $23,114    $87.75   229   229
$399.33   $22,897    $86.62   230   230
$396.82   $22,682    $85.51   231   231
$394.31   $22,467    $84.40   232   232
$391.81   $22,253    $83.31   233   233
$389.33   $22,040    $82.24   234   234
$386.86   $21,827    $81.17   235   235
$384.39   $21,616    $80.12   236   236
$381.94   $21,405    $79.08   237   237
$379.50   $21,195    $78.06   238   238
$377.07   $20,986    $77.05   239   239
$374.66   $20,777    $76.04   240   240
$372.25   $20,569    $75.06   241   241
$369.85   $20,362    $74.08   242   242
$367.47   $20,156    $73.11   243   243
$365.10   $19,951    $72.16   244   244
$362.73   $19,746    $71.22   245   245
$360.38   $19,542    $70.29   246   246
$358.04   $19,338    $69.37   247   247
$355.71   $19,136   $68.46   248   248
$353.38   $18,934   $67.56   249   249
$351.07   $18,733   $66.68   250   250
$348.77   $18,532   $65.80   251   251
$346.48   $18,333   $64.94   252   252
$344.20   $18,133   $64.08   253   253
$341.93   $17,935   $63.24   254   254
$339.67   $17,737   $62.40   255   255
$337.42   $17,540   $61.58   256   256
$335.18   $17,344   $60.77   257   257
$332.95   $17,148   $59.96   258   258
$330.73   $16,953   $59.17   259   259
$328.52   $16,759   $58.38   260   260
$326.32   $16,565   $57.61   261   261
$324.13   $16,372   $56.84   262   262
$321.95   $16,180   $56.09   263   263
$319.78   $15,988   $55.34   264   264
$317.62   $15,797   $54.60   265   265
$315.46   $15,607   $53.87   266   266
$313.32   $15,417   $53.15   267   267
$311.19   $15,228   $52.44   268   268
$309.06   $15,040   $51.74   269   269
$306.95   $14,852   $51.04   270   270
$304.84   $14,664   $50.36   271   271
$302.75   $14,478   $49.68   272   272
$300.66   $14,292   $49.01   273   273
$298.58   $14,106   $48.35   274   274
$296.51   $13,922   $47.70   275   275
$294.45   $13,737   $47.05   276   276
$292.40   $13,554   $46.41   277   277
$290.36   $13,371   $45.78   278   278
$288.32   $13,188   $45.16   279   279
$286.30   $13,006   $44.55   280   280
$284.28   $12,825   $43.94   281   281
$282.27   $12,644   $43.34   282   282
$280.27   $12,464   $42.75   283   283
$278.28   $12,284   $42.16   284   284
$276.30   $12,105   $41.59   285   285
$274.33   $11,927   $41.02   286   286
$272.36   $11,749   $40.45   287   287
$270.40   $11,572   $39.90   288   288
$268.46   $11,395   $39.35   289   289
$266.52   $11,218   $38.80   290   290
$264.58   $11,043   $38.27   291   291
$262.66   $10,867   $37.74   292   292
$260.74   $10,693   $37.21   293   293
$258.84   $10,518   $36.70   294   294
$256.94   $10,345   $36.19   295   295
$255.05   $10,172   $35.68   296   296
$253.16    $9,999   $35.18   297   297
$251.29    $9,827   $34.69   298   298
$249.42    $9,655   $34.21   299   299
$247.56    $9,484   $33.73   300   300
$245.70    $9,313   $33.25   301   301
$243.86    $9,143   $32.78   302   302
$242.02    $8,974   $32.32   303   303
$240.19    $8,805   $31.86   304   304
$238.37    $8,636   $31.41   305   305
$236.56    $8,468   $30.97   306   306
$234.75    $8,300   $30.53   307   307
$232.95    $8,133   $30.09   308   308
$231.16    $7,966   $29.66   309   309
$229.37    $7,800   $29.24   310   310
$227.60    $7,634   $28.82   311   311
$225.83    $7,468   $28.41   312   312
$224.06    $7,303   $28.00   313   313
$222.31    $7,139   $27.60   314   314
$220.56    $6,975   $27.20   315   315
$218.82    $6,811   $26.80   316   316
$217.08    $6,648   $26.42   317   317
$215.36    $6,485   $26.03   318   318
$213.63    $6,323   $25.65   319   319
$211.92    $6,161   $25.28   320   320
$210.21    $6,000   $24.91   321   321
$208.51    $5,839   $24.54   322   322
$206.82    $5,678   $24.18   323   323
$205.13    $5,518   $23.83   324   324
$203.45    $5,358   $23.48   325   325
$201.78    $5,199   $23.13   326   326
$200.12    $5,040   $22.79   327   327
$198.46    $4,881   $22.45   328   328
$196.80    $4,723   $22.11   329   329
$195.16    $4,566   $21.78   330   330
$193.52    $4,408   $21.46   331   331
$191.88   $4,251   $21.13   332   332
$190.25   $4,095   $20.82   333   333
$188.63   $3,938   $20.50   334   334
$187.02   $3,783   $20.19   335   335
$185.41   $3,627   $19.89   336   336
$183.81   $3,472   $19.58   337   337
$182.21   $3,317   $19.28   338   338
$180.62   $3,163   $18.99   339   339
$179.04   $3,009   $18.70   340   340
$177.46   $2,855   $18.41   341   341
$175.89   $2,702   $18.13   342   342
$174.32   $2,549   $17.85   343   343
$172.76   $2,396   $17.57   344   344
$171.21   $2,244   $17.30   345   345
$169.66   $2,092   $17.03   346   346
$168.12   $1,941   $16.76   347   347
$166.58   $1,790   $16.50   348   348
$165.05   $1,639   $16.24   349   349
$163.53   $1,488   $15.98   350   350
$162.01   $1,338   $15.73   351   351
$160.50   $1,188   $15.48   352   352
$158.99   $1,038   $15.23   353   353
$157.49    $889    $14.99   354   354
$155.99    $740    $14.75   355   355
$154.50    $592    $14.51   356   356
$153.02    $443    $14.27   357   357
$151.54    $295    $14.04   358   358
$150.06    $147    $13.81   359   359
$148.59     ($0)   $13.59   360   360
               Present
Cash Flow       Value
($800,000)   ($800,000)
 $852.58      $843.75
 $869.14      $851.24
 $885.57      $858.35
 $901.85      $865.08
 $917.97      $871.43
 $933.93      $877.41
 $949.72      $883.01
 $965.33      $888.23
 $980.75      $893.07
 $995.97      $897.55
$1,010.99     $901.65
$1,025.79     $905.38
$1,040.37     $908.74
$1,054.73     $911.74
$1,068.84     $914.38
$1,082.71     $916.66
$1,096.33     $918.58
$1,109.69     $920.15
$1,122.79     $921.37
$1,135.60     $922.24
$1,148.14     $922.78
$1,160.40     $922.97
$1,172.35     $922.83
$1,184.01     $922.36
$1,195.36     $921.56
$1,206.40     $920.44
$1,217.12     $919.01
$1,227.52     $917.27
$1,237.59     $915.22
$1,247.33     $912.87
$1,240.66     $898.59
$1,234.04     $884.54
$1,227.44     $870.70
$1,220.88     $857.08
$1,214.35     $843.68
$1,207.85     $830.47
$1,201.38     $817.48
$1,194.95   $804.69
$1,188.55   $792.09
$1,182.18   $779.69
$1,175.85   $767.48
$1,169.54   $755.47
$1,163.27   $743.64
$1,157.03   $731.99
$1,150.82   $720.53
$1,144.64   $709.24
$1,138.49   $698.13
$1,132.38   $687.19
$1,126.29   $676.42
$1,120.24   $665.82
$1,114.21   $655.38
$1,108.21   $645.11
$1,102.25   $634.99
$1,096.31   $625.04
$1,090.41   $615.23
$1,084.53   $605.58
$1,078.69   $596.09
$1,072.87   $586.73
$1,067.08   $577.53
$1,061.32   $568.46
$1,055.59   $559.54
$1,049.89   $550.76
$1,044.21   $542.11
$1,038.57   $533.60
$1,032.95   $525.22
$1,027.36   $516.97
$1,021.80   $508.85
$1,016.27   $500.85
$1,010.76   $492.98
$1,005.28   $485.24
 $999.83    $477.61
 $994.41    $470.10
 $989.01    $462.71
 $983.64    $455.43
 $978.29    $448.27
 $972.98    $441.22
 $967.69    $434.28
 $962.42    $427.44
 $957.18    $420.72
$951.97   $414.09
$946.79   $407.58
$941.63   $401.16
$936.49   $394.84
$931.38   $388.62
$926.30   $382.50
$921.24   $376.47
$916.21   $370.54
$911.20   $364.70
$906.21   $358.95
$901.25   $353.29
$896.32   $347.72
$891.41   $342.23
$886.52   $336.84
$881.66   $331.52
$876.82   $326.29
$872.01   $321.14
$867.22   $316.07
$862.45   $311.08
$857.71   $306.16
$852.99   $301.33
$848.30   $296.57
$843.62   $291.88
$838.97   $287.27
$834.35   $282.73
$829.74   $278.25
$825.16   $273.85
$820.60   $269.52
$816.07   $265.26
$811.55   $261.06
$807.06   $256.93
$802.59   $252.86
$798.14   $248.86
$793.72   $244.91
$789.31   $241.03
$784.93   $237.21
$780.57   $233.45
$776.23   $229.75
$771.91   $226.11
$767.62   $222.52
$763.34   $218.99
$759.09   $215.52
$754.85   $212.10
$750.64   $208.73
$746.45   $205.42
$742.27   $202.15
$738.12   $198.94
$733.99   $195.78
$729.88   $192.67
$725.79   $189.61
$721.72   $186.59
$717.67   $183.62
$713.63   $180.70
$709.62   $177.82
$705.63   $174.99
$701.66   $172.21
$697.70   $169.46
$693.77   $166.76
$689.85   $164.11
$685.96   $161.49
$682.08   $158.92
$678.22   $156.38
$674.38   $153.89
$670.56   $151.43
$666.76   $149.01
$662.98   $146.63
$659.21   $144.29
$655.46   $141.99
$651.73   $139.72
$648.02   $137.48
$644.33   $135.28
$640.65   $133.12
$637.00   $130.99
$633.36   $128.89
$629.73   $126.83
$626.13   $124.80
$622.54   $122.80
$618.97   $120.83
$615.42   $118.89
$611.88   $116.99
$608.36   $115.11
$604.86   $113.26
$601.38   $111.44
$597.91   $109.65
$594.46   $107.89
$591.02   $106.16
$587.60   $104.45
$584.20   $102.77
$580.81   $101.12
$577.44    $99.49
$574.09    $97.89
$570.75    $96.31
$567.43    $94.76
$564.13    $93.24
$560.84    $91.73
$557.56    $90.25
$554.30    $88.80
$551.06    $87.36
$547.83    $85.95
$544.62    $84.56
$541.42    $83.20
$538.24    $81.85
$535.07    $80.53
$531.92    $79.22
$528.79    $77.94
$525.66    $76.68
$522.56    $75.44
$519.46    $74.22
$516.39    $73.01
$513.32    $71.83
$510.28    $70.66
$507.24    $69.51
$504.22    $68.39
$501.22    $67.27
$498.22    $66.18
$495.25    $65.10
$492.28    $64.04
$489.33    $63.00
$486.40    $61.98
$483.48    $60.97
$480.57    $59.97
$477.67    $58.99
$474.79    $58.03
$471.92    $57.08
$469.07    $56.15
$466.23    $55.23
$463.40   $54.33
$460.59   $53.44
$457.79   $52.57
$455.00   $51.70
$452.22   $50.86
$449.46   $50.02
$446.71   $49.20
$443.97   $48.39
$441.25   $47.60
$438.54   $46.82
$435.84   $46.05
$433.15   $45.29
$430.48   $44.54
$427.82   $43.81
$425.17   $43.09
$422.53   $42.38
$419.91   $41.68
$417.29   $40.99
$414.69   $40.31
$412.10   $39.65
$409.53   $38.99
$406.96   $38.35
$404.41   $37.71
$401.86   $37.09
$399.33   $36.47
$396.82   $35.87
$394.31   $35.27
$391.81   $34.68
$389.33   $34.11
$386.86   $33.54
$384.39   $32.98
$381.94   $32.43
$379.50   $31.89
$377.07   $31.36
$374.66   $30.84
$372.25   $30.32
$369.85   $29.81
$367.47   $29.32
$365.10   $28.82
$362.73   $28.34
$360.38   $27.87
$358.04   $27.40
$355.71   $26.94
$353.38   $26.49
$351.07   $26.04
$348.77   $25.60
$346.48   $25.17
$344.20   $24.75
$341.93   $24.33
$339.67   $23.92
$337.42   $23.51
$335.18   $23.11
$332.95   $22.72
$330.73   $22.34
$328.52   $21.96
$326.32   $21.59
$324.13   $21.22
$321.95   $20.86
$319.78   $20.50
$317.62   $20.15
$315.46   $19.81
$313.32   $19.47
$311.19   $19.14
$309.06   $18.81
$306.95   $18.49
$304.84   $18.17
$302.75   $17.86
$300.66   $17.55
$298.58   $17.25
$296.51   $16.96
$294.45   $16.66
$292.40   $16.38
$290.36   $16.09
$288.32   $15.81
$286.30   $15.54
$284.28   $15.27
$282.27   $15.01
$280.27   $14.75
$278.28   $14.49
$276.30   $14.24
$274.33   $13.99
$272.36   $13.75
$270.40   $13.51
$268.46   $13.27
$266.52   $13.04
$264.58   $12.81
$262.66   $12.58
$260.74   $12.36
$258.84   $12.15
$256.94   $11.93
$255.05   $11.72
$253.16   $11.51
$251.29   $11.31
$249.42   $11.11
$247.56   $10.91
$245.70   $10.72
$243.86   $10.53
$242.02   $10.34
$240.19   $10.16
$238.37    $9.98
$236.56    $9.80
$234.75    $9.62
$232.95    $9.45
$231.16    $9.28
$229.37    $9.11
$227.60    $8.95
$225.83    $8.79
$224.06    $8.63
$222.31    $8.47
$220.56    $8.32
$218.82    $8.17
$217.08    $8.02
$215.36    $7.87
$213.63    $7.73
$211.92    $7.59
$210.21    $7.45
$208.51    $7.31
$206.82    $7.18
$205.13    $7.04
$203.45    $6.91
$201.78    $6.79
$200.12    $6.66
$198.46    $6.54
$196.80    $6.42
$195.16    $6.30
$193.52    $6.18
$191.88   $6.06
$190.25   $5.95
$188.63   $5.84
$187.02   $5.73
$185.41   $5.62
$183.81   $5.51
$182.21   $5.41
$180.62   $5.31
$179.04   $5.21
$177.46   $5.11
$175.89   $5.01
$174.32   $4.91
$172.76   $4.82
$171.21   $4.73
$169.66   $4.63
$168.12   $4.54
$166.58   $4.46
$165.05   $4.37
$163.53   $4.28
$162.01   $4.20
$160.50   $4.12
$158.99   $4.04
$157.49   $3.96
$155.99   $3.88
$154.50   $3.80
$153.02   $3.73
$151.54   $3.65
$150.06   $3.58
$148.59   $3.51
                 MBS: QUESTIONS

Use the following security for these questions:
GNMA 30 year, 10% coupon with .5% servicing, PSA: 100%, yield: 8%.
Principal Balance: 100000

1) What is the price of this security?

2) Change the number of months remaining to 300, what is the new price
  of the security?

3) Change the PSA assumption to 150, what is the new price? (Use 30
  year mortgage.

4) Change the servicing to 0% what happens to the price of the mortgage?
  Use 100% PSA.

5) Change the coupon to 10.5% (with .5% servicing) what happens? Is this
  the same as dropping the servicing to 0% on a 10% mortgage?

6) What happens to the value of the mortgage pool as interest rates
  increase? ...decrease?

7) Use the following combinations to value the security at each point,
  (Use an 8% coupon bond for this question), then construct a
  graph of the prices relative to the effective yields. Do you
  notice any peculiarityies? How do you account for this? Describe.
  (Hint: Value the security at different yields keeping PSA constant
  at 100% an compare the two graphs.)
           Eff. Yield               PSA
                 0.04                        8
                 0.05                      7.3
                 0.06                        5
                 0.07                      2.6
                 0.08                        1
                 0.09                      0.8
                   0.1                     0.7
                 0.11                      0.5
                 0.12                      0.3
                               MBS: ANSWERS

1) $109,932.21

2) $108,756.17

3) $108,565.41

4) $113,353.50

5) $113,416.47 For all practical purposes the effects are the same. One area where they
      would be different is how they respond to drops in coupons on mortgages. The
      people holding the 10.5% coupon mortgage will tend to pay off their mortgages at
      a higher rate than will those with the lower 10% coupon mortgages.

6) According to the model, the value of the security will fall as rates increase, and rise as rates
     fall…the classic inverse price yield relationship of all interest rate sensitive securities.
     But, this ignores an important feature of mortgages; the embedded prepayment or call
     option. As rates fall, people will prepay and refinance at the lower prevailing market rate.
     Therefore, as rates fall, the value of a mortgage pool may increase slightly, but will
     soon begin to level off until the value of the mortgage equals the balance. This equivalence
     will be true when prepayments begin occuring.
     This relationship of mortgage price to interest rates is known as negative convexity.
market rate.

s equivalence
                                                  Total Cash Flow

$1,400.00



$1,200.00



$1,000.00



 $800.00                                                                                                Service
                                                                                                        Prepayment
                                                                                                        Interest
 $600.00                                                                                                Principal



 $400.00


 $200.00



   $0.00
            1   16 31 46 61 76 91 106 121 136 151 166 181 196 211 226 241 256 271 286 301 316 331 346
                                                      Months
                                                                     PSA Schedule

                     7.0%



                     6.0%



                     5.0%
Yearly Prepayment Rate




                     4.0%



                     3.0%



                     2.0%


                     1.0%



                     0.0%
                            1   14 27 40 53 66 79 92 105 118 131 144 157 170 183 196 209 222 235 248 261 274 287 300 313 326 339 352
                                                                               Month
                                                    Prepayment Schedule

         $500.00




         $400.00




         $300.00
Months




         $200.00




         $100.00




            $0.00
                     1   15 29 43 57 71 85 99 113 127 141 155 169 183 197 211 225 239 253 267 281 295 309 323 337 351



         ($100.00)
                                                                 Reduction of Principal

                        $120,000



                        $100,000



                         $80,000
Outstanding Principal




                         $60,000



                         $40,000



                         $20,000



                             $0
                                   1   15 29 43 57 71 85 99 113 127 141 155 169 183 197 211 225 239 253 267 281 295 309 323 337 351
                                                                                 Months

								
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