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A mortgage pool is formed with mortgages with the following characteristics and assumptions: - Each mortgage has a balance of $119430 - There are 82
A mortgage pool is formed with mortgages with the following characteristics and assumptions: - Each mortgage has a balance of $119430 - There are 82 mortgages in pool and all enter it at origination - Each mortgage in the pool has a 5% 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 ? (Note: this is the same as summing up all the interest payments of the mortgages in the pool) Write your answers into rounded cents. For example, if you get 1,421,333.321544, write in 1421333.32
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