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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 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.
Answer
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