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a) What does a conditional prepayment rate( CPR) of 9% mean? Explain in at least two lines. b) What is the estimated monthly prepayment rate,

a) What does a conditional prepayment rate( CPR) of 9% mean? Explain in at least two lines.

b) What is the estimated monthly prepayment rate, commonly referred to as the single-monthly mortality rate (SMM).

c) Suppose that an investor owns a pass-through in which the remaining mortgage balance at the beginning of some month is $100 million. Assuming that the scheduled principal payment is $1 million, what is the estimated prepayment for the month?

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