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Basic Question 4 of 15

Coupon payments for a $45,000 par value, 9% coupon rate, monthly-pay, mortgage-backed security are ______.

A. $337.50
B. $1,012.50
C. $4,050
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User Contributed Comments 4

User Comment
woori calculate monthly payment
popolistic Annual Payment = (0.09*$45,000) = $4,050
Monthly Payment = $4,050 / 12months =$337.50
Luminos To calculate the monthly interest payment .09/12 =.0075. .0075*45,000 = 337.50
2014 Coupon payments to MBS & ASB are monthly
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Learning Outcome Statements

describe the features of a fixed-income security

CFA® 2024 Level I Curriculum, Volume 4, Module 1.