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Consider an MPT with the following characteristics: Number of mortgages in the pool: 50 All 50 mortgages are fully amortizing 15 year FRM with yearly

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Consider an MPT with the following characteristics: Number of mortgages in the pool: 50 All 50 mortgages are fully amortizing 15 year FRM with yearly payments All mortgages have a 5% interest rate Average mortgage balance: $400,000 Prepayment rate is CPR = 596 Servicing fee taken off the initial pool balance in every period is 0.5% . d) What is the dollar amount of the prepayment in year 1

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