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Given the following information about a CMO: - $36 million of mortgage pool principal assigned to the floater class. $13 million assigned to the inverse

Given the following information about a CMO:

- $36 million of mortgage pool principal assigned to the floater class. $13 million assigned to the inverse floater class.

- Floater class coupon rule: LIBOR + 0.2%

- Inverse floater class coupon rule: 12.5% - L x LIBOR

- LIBOR in the first month is 3%

What is the WAC coupon rate of the underlying collateral pool? Round your answer to three decimal points (e.g. if your answer is 5.1%, write 0.051).

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