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What is the value of all io strips

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BOA originates 15 Fully Amortizing Fixed Rate non-recourse Mortgages, each has a $120 balance, 12% interest rate (no fees), 2-year term, and annual payments. BOA immediately issues IO and PO strips backed by the pool of these mortgages and sells them to investors who discount payoffs at 5%.

What is the value of all IO strips?

Reference no: EM133110415

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