Consider a hypothetical MBS. If 10% of the principal will be paid at the end of the 6th month, 20% will be paid at the 9th month, 50% will be paid at the end of the second year, and the last 20% will be paid at the end of the 30th month. What is the average life of this MBS.

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To calculate the average life of a Mortgage Backed Security MBS with varying payment schedules yo View the full answer