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:

Directive Behaviour

Refers to a leadership style where instructions, orders, and expectations are clearly communicated by leaders to their subordinates.

Initiating Structure

A leadership behavior that emphasizes the organization of work, roles, and tasks to achieve set objectives and goals.

Participative Behaviour

Actions that involve taking part or contributing in a group or activity, often referring to a management style that includes employees in decision making.

Path-Goal Theory

A leadership theory that suggests leaders can increase subordinate satisfaction and performance by clarifying paths to goals and removing obstacles to performance.