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

question 95

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, immediately after origination, interest rates increase to 8.25 percent per annum?

• A)$15,000,000.
• B)$14,650,591.
• C)$14,000,000.
• D)$15,115,493.
• E)$15,267,549.

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