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

question 28

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 if a 44 basis point servicing fee is deducted monthly?

• A)$105,499.
• B)$114,700.
• C)$11,340.
• D)$1,055.
• E)$1,277,494.

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Definitions:

High-impedance Load

An electrical load that presents a high resistance to current flow, requiring minimal power from the source.

I/O Leakage

Unintended current that flows through the input/output circuitry of a device, even in its off state, potentially causing erroneous readings or operations.

Solid-state Switching

Solid-state Switching involves the use of semiconductor devices to control the flow of electricity without moving parts, offering advantages in durability and response time.

Grounding Requirements

refer to the essential criteria for establishing electrical connections to the earth to ensure safety and prevent electrostatic discharge.