Overseas Bank Is Pooling 50 Similar and Fully Amortized Mortgages

question 9

Multiple Choice

Overseas bank is pooling 50 similar and fully amortized mortgages into a pass-through security.The face value of each mortgage is $100,000 paying 180 monthly interest and principal payments at a fixed rate of 9 percent per annum. What is the monthly payment received by investors of the mortgage pass-through if the FI deducts a 50 basis points servicing fee?

• A)$49,237.
• B)$50,713.
• C)$50,459.
• D)$51,200.
• E)$52,100.

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