EXAMPLES OF CALCULATIONS:

"Face" value of Mortgage Bond: $300,000
Amortization Factor: 0.975647382
Interest Rate: 7.25%
Actual number of days in Quarter: 92 (from October 1 to December 31)
CALCULATION

1) Calculation of current principal amount of Mortgage Bond:

xa) $300,000 x .975647382x =
x $292,694.21

2) Calculation of Mortgage Bond Interest:

a) $292,694.21 x 7.25% =
$21,220.33
b) $21,220.00 / 365 days =
$58.14
c) 92 days x $58.14 =
$5,348.69

3) Calculation of Amortization of Principal:

a) Find Amortization Factor of previous Quarter:
 
(See Historical Data of Mortgage Trust)
Example: 0.983637363
 
b)Find Amortization Factor at current Quarter:
   
Example: 0.975647382
c) 0.983637363 - 0.975647382 =
0.007989981
d) 0.007990035 x $300,000 =
$2,396.99