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Assume that we have 2 . 7 5 % pass - through MBS with two mortgage loans. Suppose that Loan A is for $ 1

Assume that we have 2.75% pass-through MBS with two mortgage
loans. Suppose that Loan A is for $125 and Loan B is for $75. If
Loan A has a mortgage rate of 3% and Loan B has a mortgage rate of
2.75%(both rates net of servicing and G-fees), what is the WAC of
the 2.75% pass-through MBS?2.731%2.875%2.75%2.906%

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