. Suppose you purchase a Freddie Mac 30 YR 3.5% MBS (3.5% net coupon) with a $5,000,000 balance that settles on November 13. The current WALA = 12, WAM = 348, and WAC = 4.125%

(a) What is the accrued interest?

(b) The MBS is priced at 61 bps off the 10-year Treasury at 208 PSA. What is the yield you will use to price the MBS if the 10-year is currently yielding 2.37%?

(c) Using the yield from (b), what is the price of the MBS taking the actual delay into account?

(d) What is the invoice amount paid for the purchase of the bond?