medium · Asset-Backed Securities
Under the standard count-based Absolute Prepayment Model, assume equal-size, equally amortizing auto receivables. A pool began with 10,000 receivables and has 5,000 receivables at the start of the month.
If 120 receivables voluntarily prepay during the month, what is the count-based monthly mortality rate for the current pool?
- 2.40%
- 1.20%
- 4.80%
- 0.60%
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