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Due 12/9, PLEASE HELP 4. Solve the following problems about mortgage-backed securities. Suppose Federal National Mortgage Association sells mortgage-backe by fixed-rate mortgages with the MBS

Due 12/9, PLEASE HELP

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4. Solve the following problems about mortgage-backed securities. Suppose Federal National Mortgage Association sells mortgage-backe by fixed-rate mortgages with the MBS having the following features: Current mortgage balance = $300,000,000 Weighted average coupon rate (WAC) = 6% Weighted average maturity (WAM) = 360 months Current prepayment speed = 300 PSA Pass-through rate = PT Rate = 5.4% (1) What is the amount of prepayment for month 1? (2) What is the amount of total cash flows for month 1

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