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:

Functional Conflict

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