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Assume a mortgage-backed security has a $10,000,000 balance and an initial maturity of 180 months (WAM). The remaining time to maturity is 160 months. The
Assume a mortgage-backed security has a $10,000,000 balance and an initial maturity of 180 months (WAM). The remaining time to maturity is 160 months. The WAC is 6.5% and the pass-through rate is 6.35%. Assume that PSA is 250. Calculate the prepayment for the next period.
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