Question: 4 . Consider a $ 5 0 0 million pass - through backed by FRMs with a WAC rate of 5 . 5 % ,

4. Consider a $500 million pass-through backed by FRMs with a WAC rate of 5.5%, pass-through rate of 4.75% and WAM of 356 months.
a.(3 points) What is the interest amount the pass-through will pay in month 1?
b.(6 points) What is the scheduled principal payment in Month 1 by the pass-through?
c.(6 points) Assuming 150 PSA, what is the SMM in Month 1 for the pass-through?

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