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

question 53

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.
• E)$14,889,935.

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Definitions:

Radioactive Glucose

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PET

Positron Emission Tomography, a nuclear medicine functional imaging technique used to observe metabolic processes in the body as an aid to the diagnosis of diseases.

Motor Functions

The physiological capacities and activities related to the movement of body parts controlled by the nervous system.

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The cognitive process of identifying and acknowledging the presence of something previously seen, heard, or experienced.