Overseas Bank Is Pooling 50 Similar and Fully Amortized Mortgages

question 7

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:

Sensory Neurons

Neurons that transform environmental signals from outside the organism into internal electrical signals.

Receptive Fields

The specific area or region in the sensory space in which the stimulation can lead to the response of a specific sensory neuron.

Mechanoreceptors

Sensory receptors in the skin and other body tissues that respond to mechanical pressure or distortion, involved in sensations such as touch and sound.

Cold Temperature

A condition of the environment in which the thermal reading is low, often resulting in a sensation of being cold and requiring organisms to adapt or seek warmth.