Overseas Bank Is Pooling 50 Similar and Fully Amortized Mortgages

question 60

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. If the entire mortgage pool is repaid at the end of the second month, what is the weighted average life of the mortgage pool?

• A)2.10 months.
• B)2 months.
• C)1.997 months.
• D)1.95 months.
• E)1.90 months.

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Bill of Rights

The first ten amendments to the United States Constitution, ratified in 1791, guaranteeing such rights as the freedoms of speech, assembly, and worship.

Frivolous Lawsuits

Legal claims or cases that lack serious purpose or value, often brought with the intention of harassing or inconveniencing the defendant.

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An 1833 United States Supreme Court case that held the Bill of Rights restricted only the federal government and not state governments, underscoring the federalism principle.