Given that a seasoned 360-month agency mortgage pass-through security has currently a weighted average maturity (WAM) of 357 months. It has $400M outstanding balance, a 7.5% pass-through coupon rate, and 8.125% weighted average coupon (WAC). Assuming 125% PSA and a first month mortgage payment of $2,975,868, what is the expected prepayment for the first month? Group of answer choices $267,535 $267,470 $334,473 $334,647 None of the a
Given that a seasoned 360-month agency mortgage pass-through security has currently a weighted average maturity (WAM) of 357 months. It has $400M outstanding balance, a 7.5% pass-through coupon rate, and 8.125% weighted average coupon (WAC). Assuming 125% PSA and a first month mortgage payment of $2,975,868, what is the expected prepayment for the first month? Group of answer choices $267,535 $267,470 $334,473 $334,647 None of the a
Chapter2: The Domestic And International Financial Marketplace
Section: Chapter Questions
Problem 4P
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Given that a seasoned 360-month agency mortgage pass-through security has currently a weighted average maturity (WAM) of 357 months. It has $400M outstanding balance, a 7.5% pass-through coupon rate, and 8.125% weighted average coupon (WAC). Assuming 125% PSA and a first month mortgage payment of $2,975,868, what is the expected prepayment for the first month?
Group of answer choices
$267,535
$267,470
$334,473
$334,647
None of the above
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