Question: Which statement is wrong about the PSA model for prepayment?The prepayment speed of a specific mortgage pool is affected by coupon level, age of mortgage

Which statement is wrong about the PSA model for prepayment?The prepayment speed of a specific mortgage pool is affected by coupon level, age of mortgage pool, assumability, etc.The model assumes a maximum annual prepayment rate of

8 % .

The model assumes the prepayment rate levels off after

30

months.A specific mortgage pool could have a prepayment speed that is higher or lower than the standard PSA.

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