What are the expected annual payments from the investment

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Problem 1: A debt security is a claim on a mortgage pool (e.g., a Ginnie Mae pass-through security) with a face value of $100,000. The mortgages pay 9 percent and have an expected life of 20 years. Currently, interest rates are 9 percent. If you purchase the security today with no commissions, what are the expected annual payments from the investment?

Reference no: EM132942497

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