Given the following information, answer the following questions for month 12 of this security
-15 year FRMs, monthly payments
-PSA 150
-4.5% mortgage rate, 0.5% servicing fee, 3.75% discount rate
- Pool balance at the beginning of month 12: $75,946,124
- The loans were not seasoned before entering the pool
A: What is the projected prepayment amount in month 12?
B: What the total interest received by the issuer in month 12?
C: What is the payment to investors in month 12?
D: If instead the WAM of loans at issuance was 178 months (i.e. the loans were seasoned for 2 months before the security was formed), what would be the prepayment in month 12 of the security?
E: If you were told that month 12 of this security corresponded to the calendar month of January (and you were told that the appropriate seasonal adjustment factor for January was 75%) would this increase or decrease the expected cash flows to investors you found in part C (2pt)? By how much?