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After 30 months, what is the 100 PSA benchmark conditional prepayment rate per year? Multiple Choice 12 percent O 6 percent 8

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Answer #1

6 percent

CPR is a loan prepayment rate, series of monthly prepayment rates. For example student loan , mortgage loan etc

CPR increase 0.2% each month

CPR= PSA *(0.2*m)/100

CPR= 100* (0.2*30)/100= 6%

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