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

question 4

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 present value of the mortgage pass-through if, immediately after origination, interest rates increase to 8.25 percent per annum?

• A)$15,000,000.
• B)$14,650,591.
• C)$14,000,000.
• D)$15,115,493.
• E)$15,267,549.

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Definitions:

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The assumptions or beliefs employees have about their roles, responsibilities, and conditions at work, including career progression and work-life balance.

Teamwork

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