QUESTION 4 Check all that is true about the SDA default model If you know the beginning pool balance and assume a 200% SDA, you can figure out what the CDX is for each month SDA stands for standard default assumption The SDA takes into account maturity of the mortgage If you know the beginning pool balance and assume a 200% SDA, you can figure out what the CDR is for each month Under the 100% SDA assumption noone defaults when their mortgage is a few months away from being paid out SDA function for defaults takes the same shape as a PSA function for prepayments QUESTION 4 Check all that is true about the SDA default model If you know the beginning pool balance and assume a 200% SDA, you can figure out what the CDX is for each month SDA stands for standard default assumption The SDA takes into account maturity of the mortgage If you know the beginning pool balance and assume a 200% SDA, you can figure out what the CDR is for each month Under the 100% SDA assumption noone defaults when their mortgage is a few months away from being paid out SDA function for defaults takes the same shape as a PSA function for prepayments