Question
Calculate the average life of a MBS given the following principal payment schedule: Month Principal payments 1 2,555,000 2 2,550,000 3 2,545,000 4 2,544,000 5
Calculate the average life of a MBS given the following principal payment schedule:
| Month | Principal payments |
| 1 | 2,555,000 |
| 2 | 2,550,000 |
| 3 | 2,545,000 |
| 4 | 2,544,000 |
| 5 | 1,539,000 |
| 6 | 1,534,000 |
| 7 | 2,529,000 |
| 8 | 2,524,000 |
| 9 | 3,519,000 |
| 10 | 3,514,000 |
| 11 | 4,509,000 |
| 12 | 4,409,000 |
| 13 | 5,504,000 |
Group of answer choices
0.67 years
0.52 years
0.62 years
0.47 years
None of the above
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Principles Of Managerial Finance Brief
Authors: Chad J. Zutter, Scott B. Smart
8th Global Edition
1292267143, 978-1292267142
