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$500,000 of a mortgage pool had a coupon of 5%, $250,000 of the mortgage pool had a coupon of 4.5% and the last $250,000 of
$500,000 of a mortgage pool had a coupon of 5%, $250,000 of the mortgage pool had a coupon of 4.5% and the last $250,000 of the pool had a coupon of 4.25%. What is the conventional quoted coupon of the pool if the servicing fee is 0.50% (50 basis points)? Page 6
a. 3.75%
b. 4.0%
c. 4.25%
d. 5.0%
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