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.

If the entire mortgage pool is repaid after the second month,what is the second month's (liquidating) principal and interest payments?

A) $99,933 interest and $14,989,935 principal.
B) $100,000 interest and $10,065 principal.
C) $100,000 interest and $15,000,000 principal.
D) $99,933 principal and $14,989,935 interest.

Correct Answer:

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