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Consider the following anticipated annual cash flow data for an MBS that is a claim on a mortgage pool of $100,000 in mortgage loans: Year

Consider the following anticipated annual cash flow data for an MBS that is a claim on a mortgage pool of $100,000 in mortgage loans:

Year 1 2 3 4 5 6
Cash flows $30,296 $25,437 $21,258 $17,664 $14,573 $8,581

If you purchase the MBS for $103,350, what is the expected yield using the anticipated cash flows?

Group of answer choices

4.74%

4.18%

5.33%

6.00%

5.11%

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