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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

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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