Overseas Bank Is Pooling 50 Similar and Fully Amortized Mortgages

question 10

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.

---

Definitions:

Organizational Behavior Scholars

Individuals or academics who specialize in studying and analyzing how people interact within groups in a workplace setting.

Job Satisfaction

The level of contentment employees feel about their work, including aspects like their tasks, environment, and compensation.

Affective Commitment

A type of organizational commitment characterized by an employee’s emotional attachment to, identification with, and involvement in the organization.

Emotional Intelligence

The capacity to identify, comprehend, control, and logically deal with one's own feelings and those of other people.