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A newly issued mortgage pass-through security (MPT) consists of the following seven loans: a $600,000 loan for 20 years at 3.6% APR a $500,000 loan
A newly issued mortgage pass-through security (MPT) consists of the following seven loans:
a $600,000 loan for 20 years at 3.6% APR
a $500,000 loan for 10 years at 3.7% APR
a $400,000 loan for 20 years at 3.5% APR
a $300,000 loan for 15 years at 2.8% APR
a $200,000 loan for 10 years at 3.4% APR
This pool is managed by a trustee who extracts a service fee of .4% of the cash flows.
(a) What is the quoted maturity of this MPT?
(b) What is the quoted coupon rate of this MPT?
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