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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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