CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

Calculate the total expected cash flow from principal payment for the next month on a mortgage pool with $100,000 principal, scheduled monthly principal payments of $200, CPR of 6% and an age of 40 months.
Correct Answer: 713

SMM = 1 - (1 - 0.06)1/12 = 0.5143%
Prepayment = 0.5143% x ($100k - $200) = $513
Total principal payments: 513 + 200 = 713

User Contributed Comments 4

User Comment
danlan2 Total=schduled+prepayment
vi2009 it is total cash flow ..
NIKKIZ Total cash flow should include interest...
joywind The question is asking total cash flow from principal payment, no interest should be included~
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