
Ultimate access to all questions.
A junior mortgage analyst is analyzing a USD 2 million mortgage pool consisting of four mortgages. The original principal amount of the pool was USD 2.3 million. Which of the following are the best estimates of the weighted-average coupon (WAC) and the weighted-average maturity (WAM) of the mortgage pool?
A
WAC 3.93%; WAM 286 months
B
WAC 3.93%; WAM 293 months
C
WAC 3.98%; WAM 286 months
D
WAC 3.98%; WAM 293 months