The weighted average coupon (WAC) is a measurement of the rate of return on a pool of mortgages that is sold to investors as a mortgage-backed security. What Is the Weighted Average Coupon (WAC)? The weighted average coupon (WAC) is a measurement of the rate of return on a pool of m...
Sign up with one click: Facebook Twitter Google Share on Facebook Weighted average Coupon Acronyms The weighted average of the grossinterest ratesofmortgagesunderlyinga pool as of the poolissuedate; the balance of each mortgage is used as the weightingfactor. ...
Compared with the weighted average coupon rate of its underlying pool of mortgages, the pass- through rate on a mortgage pass- through security is: A.lower. B.the same. C.higher. 相关知识点: 试题来源: 解析 A A is correct. The coupon rate of a mortgage pass-through security is...
* Weighted average coupon (WAC) was between 0 percent and 26 percent lower for modified loans--approximately 3 percent lower on average, as shown in Figure 2. Unintended consequences Low Mortgage Coupons: The pool's weighted average coupon (WAC) is 4.58%, which is lower than the average for...
What Is the Purpose of a Weighted Average? In calculating a simple average, orarithmetic mean, all numbers are treated equally and assigned equal weight. But a weighted average assigns weights that determine in advance the relative importance of each data point. In calculating a weighted average,...
random quadrature formula 随机求积公式 weighted hedge 加权避险指透过加权因素调整部位(*position)的大小,对不同到期日(*maturity date)及不同息票(*coupon)的证券所从事的避险操作。此通常发生于交易员必须用期货部位以避险现 weighted against 不利于... weighted average index 加权平均指数 weighted measure...
In calculating the weighted average cost of capital (WACC), which of the following statements is least likely correct()A.The cost of preferred equity capital is the preferred dividend divided by the price of preferred shares.B.The cost of debt is equ
Related to weighted summation: Weighted averagesum·ma·tion (sə-mā′shən) n. 1. The act or process of adding; addition. 2. A sum or aggregate. 3. A concluding argument after the presentation of a legal case, especially an argument made to a judge or jury by an attorney for ...
ComputationofWeightedaveragecostofcapital(WACC): It is computed by the following formula:WACC= (E/T)*Re + (D/T)* Rd (1-t) Here, E= market valueofequity D=market valueofdebt Re=costofequity Rd=costofdebt T= corporate tax rate ...
This can be done using the following formula: Cost of Equity = Risk-Free Rate + Beta x (Expected Market Return – Risk-Free Rate) The risk-free rate is the rate of return on a risk-free investment, such as U.S. Treasury bonds. The expected market return is the expected return ...