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

question 104

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 present value of the mortgage pass-through if the entire pool is repaid after two months and there is no change in interest rates?

• A)$14,989,935.
• B)$15,089,868.
• C)$15,000,000.
• D)$15,110,065.

Grasp the implications of personality traits on leadership and decision-making within organizations.

Identify and describe the layers of cultural analysis within an organization.

Recognize the role of symbols, rituals, and stories in transmitting organizational culture.

Explain the processes through which organizations integrate and adapt to their cultures.

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Definitions:

Direct Labor-Hours

The cumulative hours spent by workers who are directly engaged in creating products, serving as the foundation for distributing labor expenses among products.

Activity-Based Costing

A pricing approach that allocates overhead and indirect expenses to associated goods and services according to their consumption of resources.

Predetermined Overhead Rate

A projected rate employed to assign manufacturing overhead expenses to particular products or job orders, utilizing a defined activity base for allocation.

Job-Order Costing System

A method of cost accounting in which costs are assigned to specific jobs or orders, used in manufacturing custom products or services.