question archive Suppose WAC for the underlying mortgage for a pass-through is 9%
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Suppose WAC for the underlying mortgage for a pass-through is 9%. The pass-through rate is 8% with a WAM of 360 months. Mortgage prepayment takes 150PSA. The par value of the mortgage is $500 million. Assume that in month 30 the beginning balance is 337,568,221 and the total principal payment in month 30 is $2,793,137. Answer the following...