You have recently been promoted to the Director of MBS in a boutique investment bank. Your department has hired summer interns and you are teaching them MBS and related income calculations. One intern approached you with some questions.

The security is a mortgage pass-through security with monthly cash flows. The relevant information that may assist calculation includes the following.

1. Outstanding balance at the beginning of month one (1) is $10,000,000.00.

2. Outstanding balance at the beginning of month two (2) is $9,969,833.67.

3. WAC (% p.a.) is 6.50%.

4. WAM (in months) at the beginning of month 1 was 200 months.

5. SMM (in %) that applied in month 2 was 0.0467869%.

6. CPR (% p.a.) was 6.00%.

7. Pass-through rate (% p.a.) was 5.50%.

8. PSA used was 140.

Question: Answer the following three questions and show your workings.

(a) Calculate the scheduled mortgage payment in month two (2)?

(b) Calculate the scheduled principal repayment in month two (2)?

(c) Calculate the estimated prepaid principal in month two (2)?