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Consider an MPT that is backed by 50 mortgages with average balance of $400,000 and yearly payment. The MPT has a WAC = 6% and

Consider an MPT that is backed by 50 mortgages with average balance of $400,000 and yearly payment. The MPT has a WAC = 6% and WAM = 15 years. There is no servicing fee on this security. Assuming there is no prepayment and market rate is 3%, how much should this security sell for?

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