hard · Asset-Backed Securities
The 'Absolute Prepayment Speed' (ABS%) convention is used for auto loans.
If a $500M original pool balance has a 1.20% ABS speed, what is the monthly prepayment amount when the current pool balance has amortized to $300M?
- $3.6M
- $6.0M
- $1.2M
- $7.2M
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