Overseas Bank Is Pooling 50 Similar and Fully Amortized Mortgages

question 55

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. If the entire mortgage pool is repaid after the second month, what is the second month's interest and principal payments?

• A)$37,441 interest and $13,275 principal.
• B)$13,275 principal and $37,441 interest.
• C)$13,312 interest and $4,986,786 principal.
• D)$4,986,786 interest and $37401 interest.
• E)$37,401 interest and $4,986,786 principal.

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Definitions:

World Interdependence

The mutual reliance between different countries and their economies, often leading to a global network of trade and communication.

Intellectual Capital

The intangible assets of an organization, including its knowledge, experiences, and intellectual property, that contribute to its competitive edge.

Knowledge Worker

An individual whose job involves handling or using information and knowledge, often in fields like IT, finance, and engineering.

Work-life Balance

The equilibrium achieved between professional obligations and personal life, contributing to overall well-being.