In the context of mortgage-backed securities, a conditional prepayment rate (CPR) of 8% means that approximately 8%

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In the context of mortgage-backed securities, a conditional prepayment rate (CPR) of 8% means that approximately 8% of the outstanding mortgage pool balance at the beginning of the year is expected to be prepaid:

A. In the current month.

B. By the end of the year.

C. Over the life of the mortgages.

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Fixed Income Analysis

ISBN: 9781119850540

5th Edition

Authors: Barbara S. Petitt

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