Calculation of Weighted Average Maturity (WAM)

To calculate the weighted average maturity, we use the formula:

WAM = Σ(Weight_i × Maturity_i)

Where Weight_i = (Amount_i / Total Amount)

Step 1: Calculate Total Amount

Total = $2M + $3M + $5M + $10M = $20 million

Step 2: Calculate Weights

• Pool 1: $2M / $20M = 0.10 (10%)
• Pool 2: $3M / $20M = 0.15 (15%)
• Pool 3: $5M / $20M = 0.25 (25%)
• Pool 4: $10M / $20M = 0.50 (50%)

Step 3: Calculate Weighted Maturities

• Pool 1: 0.10 × 90 days = 9 days
• Pool 2: 0.15 × 180 days = 27 days
• Pool 3: 0.25 × 270 days = 67.5 days
• Pool 4: 0.50 × 360 days = 180 days

Step 4: Sum Weighted Maturities

WAM = 9 + 27 + 67.5 + 180 = 283.5 days ≈ 284 days

Therefore, the correct answer is 284 days (Option D).