QUESTION $8$

The weighted average coupon of a bond, which is based on the following mortgages is closest to: Mortgage X: value $-$ $$1,900,000,$ time to maturity $-27$ years, interest rate $5\mathrm{.}5\%$ Mortgage Y: value $-$ $$1,150,000,$ time to maturity $-25$ years, interest rate $5\%$ Mortgage Z: value $-$ $$1,850,000,$ time to maturity $-23$ years, interest rate $6\%$

$5\mathrm{.}50\%$

$5\mathrm{.}57\%$

$6\mathrm{.}00\%$

$6\mathrm{.}23\%$

$2$ points

QUESTION $9$

Prior to the secondary mortgage market it was difficult for thrifts to sell mortgages because:

Their mortgage assets were not homogeneous.

Both of these statements.

Potential buyers were concerned with default risk.

None of these statements.