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

question 61

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 monthly payment on the mortgage pass-through if a 44 basis point servicing fee is deducted monthly?

• A)$105,499.
• B)$114,700.
• C)$11,340.
• D)$1,055.
• E)$1,277,494.

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Definitions:

Price

The value in terms of money expected, to be provided, or already given in exchange for a service.

Miles

A unit of measure equal to 5280 feet or about 1609 meters, commonly used to measure distances.

Second-Class Tickets

A category of tickets offering a level of service below first-class, typically at a lower cost, in transportation.

First-Class Tickets

Tickets that provide the highest level of service and amenities offered by an airline, train, or other transportation service.