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

question 45

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.

Understand the implications of user costs on resource extraction rates.

Comprehend the economic benefits of forests beyond timber, including ecosystem services.

Grasp the significance of enforceable property rights for the conservation of resources.

Analyze the impact of granting property rights on deforestation rates.

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Definitions:

Land Purchase

This refers to the acquisition of land as an asset, representing the cost paid to obtain ownership of a land parcel.

Investing Section

Part of the cash flow statement that shows cash inflows and outflows related to investments in securities, property, plant, and equipment.

Statement of Cash Flows

A document that illustrates the impact of modifications in balance sheet positions and income on cash and cash equivalents, categorized by operating, investing, and financing actions.

Cash Flow Statement

A financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company, showing how well it generates cash to fund its operating expenses and debt obligations.