A. Mr. Simpson is looking at the historical prepayment for a passthrough security. He finds the following: I.Mortgage balance in month 42 = $260,000,000 II.Scheduled principal payment in month 42 = $1,000,000 III.Prepayment in month 42 = $2,450,000 Answer the following questions: a.What is the SMM for month 42? b.How should Mr. Simpson interpret the SMM computed? c.What is the CPR for month 42? How should Mr. Simpson interpret the CPR computed?