Consider the following fixed-rate level-payment mortgage pass-through security: Total principal outstanding = $10,000,000 Weighted average mortgage (Note) rate = 8.25% Weighted average remaining maturity = 30 years (360 months) Pass-through rate=7.5%

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

b. 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.

c. Assume 125 PSA pre-payment. What is the amount of prepayment in the sixth month?