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

question 107

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. For the first monthly payment, what portion is principal and what portion is interest?

• A)$100,000 principal and $10,065 interest.
• B)$12,000 interest and no principal.
• C)$100,000 interest and no principal.
• D)$100,000 interest and $10,065 principal.
• E)$10,000 interest and $2,000 principal.

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Definitions:

Catholic Dissidents

Individuals or groups who challenge or dissent from the teachings and authority of the Catholic Church.

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Businesses specialized in facilitating international trade by dealing with different aspects such as import-export operations, and sometimes investing in commercial ventures.

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