A prepayment rate of 80 PSA means that investors can expect:

A. 80% of the par value of the mortgage pass-through security to be repaid prior to the security’s maturity.

B. 80% of the borrowers whose mortgages are included in the collateral backing the mortgage pass-through security to prepay their mortgages.

C. The prepayment rate of the mortgages included in the collateral backing the mortgage pass-through security to be 80% of the monthly prepayment rates forecasted by the PSA model.