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QUESTION 2 The quoted coupon of a bond, which is based on the following mortgages is closest to: Mortgage X: value - $ 2 ,

QUESTION 2
The quoted coupon of a bond, which is based on the following mortgages is closest to: Mortgage X: value - $2,900,000, time to maturity -31 years, interest rate 2.35% Mortgage Y: value - $1,550,000, time to maturity -30 years, interest rate 2.55% Mortgage Z: value - $1,850,000, time to maturity -28 years, interest rate 1.85%*Assume servicing fee at 0.5%
2.25%
1.75%
2.75%
1.35%
2 points
QUESTION 3
The quoted maturity of a bond, which is based on the following mortgages is closest to: Mortgage X: value - $2,900,000, time to maturity -31 years, interest rate 2.35% Mortgage Y: value - $1,550,000, time to maturity -30 years, interest rate 2.55% Mortgage Z: value - $1,850,000, time to maturity -28 years, interest rate 1.85%*Assume servicing fee at 0.5%
31.00 years
29.87 years
29.67 years
28.00 years

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