Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider the following pool of mortgages: 100 mortgages with initial balance of $386,713, interest rate 2.8%, issued for 30 years with monthly payments 50 mortgages

Consider the following pool of mortgages:

  • 100 mortgages with initial balance of $386,713, interest rate 2.8%, issued for 30 years with monthly payments
  • 50 mortgages with initial balance of $364,046, interest rate 2%, issued for 15 years with monthly payments

What is the Weighted Average Maturity for this pool at origination? Express your answer in months rounded to 2 decimal points (e.g. if your answer is 5.6744 months, write 5.67).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Economics

Authors: Zvi Bodie, Robert C Merton, David Cleeton

2nd Edition

0558785751, 9780558785758

More Books

Students also viewed these Finance questions

Question

Which is the most important function of management? Explain why.

Answered: 1 week ago

Question

Explain the benefits of a health and wellness strategy

Answered: 1 week ago

Question

Describe the components of a workplace wellness programme

Answered: 1 week ago