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A mortgage pool is formed with mortgages with the following characteristics and assumptions: Each mortgage has a balance of $116768 There are 90 mortgages in
A mortgage pool is formed with mortgages with the following characteristics and assumptions:
Each mortgage has a balance of $116768
There are 90 mortgages in pool and all enter it at origination
Each mortgage in the pool has a 7% interest rate and are 10 year FRM with annual payments
No prepayment
No servicing or guarantee fee
What is the interest paid by the mortgage pool in year 1?
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Financial Management Principles And Applications
Authors: J William Petty, Sheridan Titman, Arthur J Keown, John D Martin, Peter Martin, Michael Burrow, Hoa Nguyen
6th Edition
1442539178, 9781442539174
