medium · Asset-Backed Securities
A 100% PSA prepayment model assumes that the CPR ramps from 0.2% in month 1 to 6.0% in month 30.
What is the CPR assumption for a mortgage bond at month 15 if it is being modeled at 250% PSA?
- 4.50%
- 7.50%
- 1.50%
- 15.00%
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