Question: QUESTION 14 Consider an MPT created from the following pool of loans: Number of Loans Principal Rate Maturity Group 1 50 $200,000 5% 30 years

 QUESTION 14 Consider an MPT created from the following pool of

QUESTION 14 Consider an MPT created from the following pool of loans: Number of Loans Principal Rate Maturity Group 1 50 $200,000 5% 30 years Group 2 100 $100,000 4% 15 years Which of the following statements is FALSE? O A. At issuance, WAM of this security is 22.5 years B. As mortgages in this pool become more seasoned, WAC will go up C. At issuance, WAC of this security is 4.5% D. At issuance, both groups have equal share in total pool balance O E. As mortgages in this pool become more seasoned, WAM will go up

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!