Overseas Bank Is Pooling 50 Similar and Fully Amortized Mortgages

question 109

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 at the end of the second month, what is the weighted average life of the mortgage pool?

• A)2.10 months.
• B)2 months.
• C)1.997 months.
• D)1.95 months.
• E)1.90 months.

Comprehend the basics and importance of SQL as a query language for databases.

Identify the goals and processes of normalization in database design.

Know the different types of relationships in database modeling.

Understand the use of specific software tools for database querying.

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Definitions:

Vocational School

An educational institution designed to provide vocational education, or technical skills required to perform the tasks of a particular and specific job.

Revenue Variances

Differences between actual revenue and budgeted or forecasted revenue figures.

Budgets

Financial plans that estimate future income, expenditures, and resources over a specific period.

Standard Cost System

A cost accounting system that compares actual costs to predetermined or standard costs to help in budgeting and variance analysis.