A pool of mortgages is predicted to prepay at the rate of


A pool of mortgages is predicted to prepay at the rate of 200% PSA. If the pool has a starting balance of $82,500,000 at the end of month 27 and is scheduled to make regular principal payments in the amount of $500,000 in month 28, what dollar amount of the pool is predicted to prepay in month 28, given our PSA assumption?

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Financial Management: A pool of mortgages is predicted to prepay at the rate of
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