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Question
One hundred identical mortgages are pooled together into a pass-through security. Each mortgage has a $150,000 principal, a fixed annual interest rate of 8 percent (paid monthly), and is fully amortized over a term of 30 years.
What is the weighted average life of the above mortgage pool?
A. 30 years.
B. 2 months.
C. 1.998 months.
D. 1 month.
E. 1.5 months.
Answer
This answer is hidden. It contains 38 characters.
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