Assume an agency pass-through security is sized at $500mm, with pass-through rate of 7% s...

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Finance

Assume an agency pass-through security is sized at $500mm, with pass-through rate of 7% s secured by collateral with a WAM of 350 and WAC of 8.5%

  1. At 100 PSA and at annual discount rate of 5%,
  2. What is the WAL?
  3. What is the price of the security?

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