26-111 What Is the Market (Present)value of the Mortgage Pass-Through

question 77

Multiple Choice

26-111 What is the market (present) value of the mortgage pass-through to the investor if the interest rates on this risk category of securities decrease to 7 percent? (Note that investors receive payments net of the 50 basis points servicing fees.)

• A)$4,892,200.
• B)$5,000,000.
• C)$5,152,189.
• D)$5,477,910.
• E)$5,675,005.

---

Definitions:

Writing

The act or process of forming visible letters or characters specifically for communication or documentation.

Secret Commission

A payment made to an individual for facilitating a transaction without the knowledge of all parties involved.

Entitled

Having a right or claim to something, often by law or through agreements.

Discovered

The act of finding something or someone that was previously unknown or hidden.