In the context of mortgage-backed securities, a conditional prepayment rate (CPR) of 8% means that approximately 8%
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In the context of mortgage-backed securities, a conditional prepayment rate (CPR) of 8% means that approximately 8% of the outstanding mortgage pool balance at the beginning of the year is expected to be prepaid:
A. In the current month.
B. By the end of the year.
C. Over the life of the mortgages.
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The answer is B By the end of the year A conditional prepayment rate CPR is an esti...View the full answer
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