- Break Even Payment Rate
- Rate at which a MBS coupon will be prepaid so that it gives the same CFY that a given benchmark MBS coupon would. For coupons exceeding the benchmark coupon, this helps determine the rate of prepayment that gives the same CFY as benchmark coupon. For coupons that are below benchmark coupon it helps determine lowest rate of prepayment rate that gives same CFY as benchmark coupon.
Break Even Payment Rate
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