Scheduled principal reduction during the first month

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Suppose ABC Bank sells mortgage-backed securities backed by its $100M portfolio of fixed-rate mortgages with the MBS having the following features: Weighted-average coupon rate = 10% Weighted-average maturity = 360 months Principal = $100M Estimated prepayment speed = 150 PSA Required monthly payment from borrowers = $877,571.57 What is the scheduled principal reduction during the first month?

Reference no: EM131918891

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