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Question
The underlying GNMA 15-year mortgage pool has a principal amount of $50 million and an annual yield of 6 percent (paid monthly). Assume that there are no prepayments.
What is the first monthly payment on the Interest Only (IO) strip?
A. $3,000,000.
B. $421,928.
C. $250,000.
D. $299,775.
E. $171,928.
Answer
This answer is hidden. It contains 72 characters.
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