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4. (MBS/ABS) Consider a bank that has a pool of current fixed rate mortgages that are worth $100 million, yield a WAC of 3.8%, and

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4. (MBS/ABS) Consider a bank that has a pool of current fixed rate mortgages that are worth $100 million, yield a WAC of 3.8%, and have a WAM of 360 months with 125 PSA. What are the cash flows for the first two months? Estimate the beginning balance for month 3. (25 points)

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