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Consider the following pool of mortgages: - 100 mortgages each with initial balance of $221088, interest rate 3.4%, issued for 30 years with monthly payments
Consider the following pool of mortgages: - 100 mortgages each with initial balance of $221088, interest rate 3.4%, issued for 30 years with monthly payments - 80 mortgages each with initial balance of $389991, interest rate 2.5%, issued for 15 years with monthly payments What is the Weighted Average Coupon (WAC) for this pool at origination? Express your answer as a rate rounded to 2 decimal points (e.9. if your answer is 5.112%, write 5.11)
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