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Compute the first period cash flows coming to the stripped IO and PO structures created from the following mortgage portfolio: Mortgage collateral = $100m Weighted

Compute the first period cash flows coming to the stripped IO and PO structures created from the following mortgage portfolio:

Mortgage collateral = $100m

Weighted average coupon rate (WAC) = 6% (no service fee, all the coupon passed through to investors)

Weighted average maturity (WAC) = 360 months

Estimated prepayment speed = 165 PSA

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