Consider the following pool of mortgages: 100 mortgages with initial balance of $394,395, interest rate 2.1%,...

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Consider the following pool of mortgages: 100 mortgages with initial balance of $394,395, interest rate 2.1%, issued for 30 years with monthly payments 80 mortgages with initial balance of $278,090, interest rate 3.1%, issued for 15 years with monthly payments What is the Weighted Average Coupon (WAC) for this pool at origination? Express your answer as a rate rounded to 2 decimal points (e.g. if your answer is 5.112%, write 5.11). Consider the following pool of mortgages: 100 mortgages with initial balance of $394,395, interest rate 2.1%, issued for 30 years with monthly payments 80 mortgages with initial balance of $278,090, interest rate 3.1%, issued for 15 years with monthly payments What is the Weighted Average Coupon (WAC) for this pool at origination? Express your answer as a rate rounded to 2 decimal points (e.g. if your answer is 5.112%, write 5.11).

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Answer To calculate the Weighted Average Coupon WAC for the pool of mortgages we need to consider th... View the full answer