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

question 108

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 weighted average life of the above mortgage pool?

• A)30 years.
• B)2 months.
• C)1.998 months.
• D)1 month.
• E)1.5 months.

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Set Notation

The formal language used to describe a set, including symbols and conventions for expressing membership, union, intersection, and other set properties.

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The set containing all elements from two or more given sets, without duplication.

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