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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Definitions:

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The process by which the kidneys regulate the amount of water in urine to maintain fluid balance in the body.

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A semi-permeable membrane tube used in separation techniques that facilitates the exchange of substances between the tube and the surrounding fluid.

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