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Question 1 $400 million of MBBs are issued against a $500 million pool of mortgages (overcollateralization is $ 100 million). There are 40,000 bonds issued,

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Question 1 $400 million of MBBs are issued against a $500 million pool of mortgages (overcollateralization is $ 100 million). There are 40,000 bonds issued, each with a face value of $10,000. The MBB pays 7.5% coupon rate semiannually and matures in 15 years. What is the price of this MBB if the current interest rate is 6.5%

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