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