Overseas Bank Is Pooling 50 Similar and Fully Amortized Mortgages

question 31

Multiple Choice

Overseas bank is pooling 50 similar and fully amortized mortgages into a pass-through security.The face value of each mortgage is $100,000 paying 180 monthly interest and principal payments at a fixed rate of 9 percent per annum. For the first monthly payment, what are the interest and principal portions of the payment?

• A)$37,500 principal and $13,213 principal.
• B)$37,500 interest and $13,213 principal.
• C)$37,500 principal and $7,809 interest.
• D)$37,500 interest and $7,809 principal.
• E)$37,500 interest and $17,756 principal.

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Definitions:

Ciliary Body

A structure in the eye that produces aqueous humor, contributes to intraocular pressure, and plays a role in changing the shape of the lens to focus light.

Suspensory Ligaments

Suspensory ligaments are fibrous tissues that support organs or parts, notably the lens of the eye, maintaining its position and shape.

Lens

A transparent, biconvex structure in the eye that focuses light rays onto the retina, allowing for clear vision at various distances.

Gustatory Receptors

Sensory receptors located on the tongue that detect taste.