Consider the following pool of mortgages: 100 mortgages each with initial balance of $291297, interest...

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Consider the following pool of mortgages: • 100 mortgages each with initial balance of $291297, interest rate 2.2%, issued for 30 years with monthly payments 80 mortgages each with initial balance of $278805, interest rate 4.8%, issued for 15 years with monthly payments What is the Weighted Average Coupon (WAC) for this pool at origination? Consider the following pool of mortgages: • 100 mortgages each with initial balance of $291297, interest rate 2.2%, issued for 30 years with monthly payments 80 mortgages each with initial balance of $278805, interest rate 4.8%, issued for 15 years with monthly payments What is the Weighted Average Coupon (WAC) for this pool at origination?

Answer rating: 100% (QA)

SOLUTION To calculate the Weighted Average Coupon WAC for this pool of mortgages we need to find the total dollar amount of all the mortgages and the ... View the full answer