The "maturity date" for this security is shown as "10/01/2035". An investor in this security might be concerned about its very long maturity (30 years). Why is the maturity date a misleading measure of the security's maturity?

What will be an ideal response?

The maturity is misleading because of prepayments that, in essence, make the maturity less.

Not all of the mortgages that are included in the loan pool that are securitized need to have the same maturity. Consequently, when describing a pass-through security, the weighted-average maturity is determined. A weighted-average maturity (WAM) is found by weighting the remaining number of months to maturity for each mortgage loan in the pool by the amount of the mortgage outstanding. This measure is also referred to as the weighted average loan term (WALT). In conclusion, the stated maturity of a mortgage pass-through security is an inappropriate measure because of prepayments and for this reason market participants use two other measures: Macaulay duration and average life.