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Consider an MPT created from the following pool of loans: Number of Loans Principal Rate Maturity Group 1 50 $200,000 5% 30 years Group 2
Consider an MPT created from the following pool of loans:
Number of Loans | Principal | Rate | Maturity | |
Group 1 | 50 | $200,000 | 5% | 30 years |
Group 2 | 100 | $100,000 | 4% | 15 years |
Which of the following statements is FALSE?
A. | At issuance, WAC of this security is 4.5% | |
B. | As mortgages in this pool become more seasoned, WAC will go up | |
C. | At issuance, WAM of this security is 22.5 years | |
D. | As mortgages in this pool become more seasoned, WAM will go up | |
E. | At issuance, both groups have equal share in total pool balance |
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