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Basic Question 0 of 3
Using the Public Securities Association Prepayment benchmark, calculate CPR and SMM.

User Contributed Comments 6
User | Comment |
---|---|
danlan2 | Using PSA benchmark, CPR = 6%*t/30 When PSA=90, CPR=0.9*0.06*10/30=1.8% |
pb09 | where'd we get 6% and 10/30 from?? |
bodduna | If t<30, cpr = 6%*t/30, If t>30, cpr = 6%. It is a standard |
Catalin92 | This came from nowhere... |
khalifa92 | yeah and there's no emphasize about it in the book. just 3 lines. |
Ewan2015 | odduna: Thank you for explaining that. Better than the summary that makes no mention of that standard :( |

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Learning Outcome Statements
describe types and characteristics of residential mortgage-backed securities, including mortgage pass-through securities and collateralized mortgage obligations, and explain the cash flows and risks for each type
CFA® 2025 Level I Curriculum, Volume 4, Module 19.