One Hundred Identical Mortgages Are Pooled Together into a Pass-Through

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.

For the first monthly payment,what portion is principal and what portion is interest?

A) $100,000 principal and $10,065 interest.
B) $12,000 interest and no principal.
C) $100,000 interest and no principal.
D) $100,000 interest and $10,065 principal.

Correct Answer:

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