Suppose that based on a prepayment assumption of 200 PSA the cash flow yield for a specific agency pass-through security is 7.5% and the stated maturity is 15 years. Suppose further that the average life of this security is 8 years. Under which circumstances will an investor actually realize the 7.5% cash flow yield?

5 points Suppose that based on a prepayment assumption of 200 PSA the cash flow yield for a specific agency pass-through security is 7.5% and the stated maturity is 15 years. Suppose further that the average life of this security is 8 years. Under which circumstances will an investor actually realize the 7.5% cash flow yield? Edit View Insert Format Tools Table 12pt Paragraph