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Question
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?
A. $100,000.
B. $110,065.
C. $12,000.
D. $12,000,000.
E. $80,000.
Answer
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