Overseas Bank Is Pooling 50 Similar and Fully Amortized Mortgages

question 20

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.
-What is the monthly payment received by investors of the mortgage pass-through if the FI deducts a 50 basis points servicing fee?

• A)$49,237.
• B)$50,713.
• C)$50,459.
• D)$51,200.
• E)$52,100.

Understand the basic concepts of monopoly, including the ability of a monopolist to set prices.

Comprehend the conditions and effects of price discrimination under monopoly.

Grasp the economic outcomes of monopolies, including profits, losses, and efficiencies.

Analyze the impact of natural monopoly and network effects on market dynamics.

---

Definitions:

Active Listening

Active Listening is the process of fully concentrating, understanding, responding, and remembering what is being said in a conversation.

Emotional Support

Assistance provided through understanding, empathy, and concern for one's well-being.

Active Listening

Active Listening is fully concentrating on what is being said rather than just passively hearing the message, showing full involvement and understanding.

Engagement

The degree of attention, enthusiasm, and dedication that an individual shows towards a particular activity or task.