Find what is the total amount of the prepayments

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Problem 1: Consider a $400 million pass-through MBS that has just been created (so the 'seasoning' of the pass-through is equal to 0). The underlying pool of mortgages each has a maturity of 20 years and an annual mortgage coupon rate of 6%. The pass-through rate of the mortgage pool is 5%. What is the total amount of the prepayments?

 

Reference no: EM132731290

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