Overseas Bank Is Pooling 50 Similar and Fully Amortized Mortgages

Overseas bank is pooling 50 similar and fully amortized mortgages into a pass-through security. The face value of each mortgage is $100,000 paying 180 monthly interest and principal payments at a fixed rate of 9 percent per annum.
-What is the monthly payment received by investors of the mortgage pass-through if the FI deducts a 50 basis points servicing fee?

A) $49,237.
B) $50,713.
C) $50,459.
D) $51,200.
E) $52,100.

Correct Answer:

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