Overseas Bank Is Pooling 50 Similar and Fully Amortized Mortgages

question 19

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.

For the first monthly payment,what are the interest and principal portions of the payment?

• A)$37,500 principal and $13,213 principal.
• B)$37,500 interest and $13,213 principal.
• C)$37,500 principal and $7,809 interest.
• D)$37,500 interest and $7,809 principal.

---

Definitions:

Values

Core beliefs or principles that guide and motivate attitudes and actions.

Cathect

To invest emotional energy into a person, object, or idea.

Transference Neurosis

A phenomenon in psychoanalysis where patients project feelings, attitudes, or desires onto the therapist that actually stem from previous relationships in their lives.

Standard Psychoanalysis

A therapeutic method developed by Freud focusing on uncovering unconscious conflicts and motivations through techniques like dream analysis and free association.