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If a mortgage pool has a CPR of 8% that means: a) The pool is expected to experience an 8% default rate during its life.

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If a mortgage pool has a CPR of 8% that means: a) The pool is expected to experience an 8% default rate during its life. b) Approximately 8% of the outstanding mortgage balance at the beginning of the year is expected to be prepaid by the end of the year. c) Approximately 8% of the pool s expected to be defeased by the end of the year

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