If 150 $200,000 mortgages in a $60 million 15-year mortgage pool are expected to be prepaid in
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If 150 $200,000 mortgages in a $60 million 15-year mortgage pool are expected to be prepaid in three years and the remaining 150 $200,000 mortgages are to be prepaid in four years, what is the weighted-average life of the mortgage pool? Mortgages are fully amortized, with mortgage coupon rates set at 10 percent to be paid annually. LO.1
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Financial Institutions Management A Risk Management Approach
ISBN: 9780073530758
7th Edition
Authors: Anthony Saunders, Marcia Cornett
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