Assume that we have 2.75% pass-through MBS with two mortgage loans. Suppose that Loan A is for $125 and Loan B is for $75. If Loan A has a mortgage rate of 3% and Loan B has a mortgage rate of 2.75% (both rates net of servicing and G-fees), what is the WAC of the 2.75% pass-through MBS?

Answer rating: 100% (QA)

To calculate the Weighted Average Coupon WAC of the 275 p... View the full answer