CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

Consider the following mortgage pool information:

Balance: $1,000,000
SMM: 0.006
Scheduled monthly repayment: $20,000

The forecasted prepayment amount for the next month is:
Correct Answer: $5,880

Prepayment = 0.006 x ($1,000,000 - $20,000) = $5,880

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