One Hundred Identical Mortgages Are Pooled Together into a Pass-Through

question 12

Multiple Choice

One hundred identical mortgages are pooled together into a pass-through security.Each mortgage has a $150,000 principal, a fixed annual interest rate of 8 percent (paid monthly) , and is fully amortized over a term of 30 years. What is the monthly payment on the mortgage pass-through?

• A)$100,000.
• B)$110,065.
• C)$12,000.
• D)$12,000,000.
• E)$80,000.

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The measure of a country's economic output per person, calculated by dividing the Gross Domestic Product by the total population.

Upper Volta

The former name of the West African country now known as Burkina Faso, until it was renamed in 1984.

Lower Volta

A region in Ghana, characterized by the Volta River's lower part, significant for its hydroelectric projects and agriculture.

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The total output of goods and services produced by an economy over a specific time period.