Consider a mortgage pool with principal of $20 million. The maturity is 30 years a monthly...

Consider a mortgage pool with principal of $20 million. The maturity is 30 years a monthly mortgage payments and the interest rate of 10 per cent per annum. (Assume no prepayments).

What is the monthly mortgage payment (100 per cent amortising) on the pool of mortgage?

A.$193,004.33 B.$182,236.25 C.$175,514.31 D.$176,798.75

If the mortgage-backed security insurance fee is 60 basis points and servicing fee is 40 basis points, what is the monthly payment on the pass-through security issued from this pool of mortgages?

A.$162,227.25 B.$158,350.31 C.170,854 .50 D.$160,924.52

Expert Solution

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jeff jeffy answered 1 year ago

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