Question: Me. Jamison is looking at the historical prepayment for a passthrough security. He finds the following: mortgage balance in month 42=$260,000,000 scheduled principal payment in

Me. Jamison is looking at the historical prepayment for a passthrough security. He finds the following: mortgage balance in month 42=$260,000,000 scheduled principal payment in month 42=$1,000,000 prepayment in month 42=$2,450,000 a. What is the SMM for month 42 ? (0.9459%) b. How should Mr. Jamison interpret the SMM computed? c. What is the CPR for month 42 ? (10.78%) d. How should Mr. Jamison interpret the CPR computed

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