MBS maturity premium

CFA Level III Economics
#1

Question regarding end of chapter questions 3) a) in reading 14.

I understand why the 1% maturity premium is added to the corporate bond, but why is the maturity premium not added to the 10yr MBS as well?

Any help will be much appreciated.

#2

read the fine print at the bottom of the question (under the table) …

#3

Thanks CP… Can’t believe I missed that.

#4

Spot on.