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Use the following information to answer the next three questions: You are analyzing a mortgage pool that consists of the following groups of mortgages. Mortgages

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Use the following information to answer the next three questions: You are analyzing a mortgage pool that consists of the following groups of mortgages. Mortgages within each group are identical. Group Balance Contract Rate Remaining Term Group A $85 million 2.00% 20 years Group B $165 million 2.25% 25 years Group C $250 million 2.50% 30 years Group D $150 million 3.25% 30 years D Question 28 3 pts Compute the WAM for this mortgage pool. 25.74 years 26.28 years 27.42 years 28.17 years 29.23 years Question 29 3 pts Compute the WAC for this mortgage pool. O 2.32% O 2.43% O 2.54% 2.69% 2.81% Question 30 3 pts If we believe that this pool will prepay at 150% of PSA, how much will the prepayment be in month 14? For simplicity, use the beginning pool balance in this calculation - do not try to compute the pool balance at month 14. $1,279,247.28 $1,784,010.59 $2,320,006.10 $2,746,119.47 O $3,654,496.38

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