A pass-through security issued by Royal Bank is backed by a pool of 5700 identical mortgages. The principal of each mortgage is $474,000. Each mortgage has a fixed annual interest rate of 12% paid monthly and a maturity of 30 years. What is the amount of interest included in the second monthly payment? (Round your answer to the nearest integer, i.e. without decimals and please do not show the $ sign in the answer e.g. if the answer is $15320.63, enter 15321). Answer:

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A pass-through security issued by Royal Bank is backed by a pool of 5700 identical mortgages.
The principal of each mortgage is $474,000. Each mortgage has a fixed annual interest rate of
12% paid monthly and a maturity of 30 years.
What is the amount of interest included in the second monthly payment?
(Round your answer to the nearest integer, i.e. without decimals and please do not
show the $ sign in the answer e.g. if the answer is $15320.63, enter 15321).
Answer:
Transcribed Image Text:A pass-through security issued by Royal Bank is backed by a pool of 5700 identical mortgages. The principal of each mortgage is $474,000. Each mortgage has a fixed annual interest rate of 12% paid monthly and a maturity of 30 years. What is the amount of interest included in the second monthly payment? (Round your answer to the nearest integer, i.e. without decimals and please do not show the $ sign in the answer e.g. if the answer is $15320.63, enter 15321). Answer:
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