Consider the following fixed-rate level-payment mortgage pass-through security:

Total principal outstanding = $10,000,000

Weighted average mortgage (Note) rate = 5.25%

Weighted average remaining maturity = 30 years (360 months)

Pass-through rate=4.5%

What is the scheduled monthly mortgage payment if there is no prepayment?

Assume that you are an investor in the pass-through security. Calculate the interest and scheduled principal repayment received by you for the sixth month. Assume there is no other prepayment in the first six months.

Now, assume 120 PSA pre-payment. What is the amount of prepayment in the sixth month?