In constant prepayment rates (CPRs), the prepayment speed of the security in question is constant or, the timing of the prepayments doesn't adhere to defined patterns.

Question

Quizplus · Accepted Answer

Constant prepayment rates (CPRs) imply that prepayments occur at a constant rate over time, unlike when prepayments occur irregularly and do not adhere to defined patterns. Therefore, the statement is true.

In Constant Prepayment Rates (CPRs), the Prepayment Speed of the Security