Given a single monthly mortality rate (SMM) of 0.45 percent, a mortgage pool with a $200,000 principal balance outstanding at the beginning of the 26th month, and a scheduled monthly principal payment of $60.00 for the 26th month, the estimated prepayment is:
　　A. $450.00.
　　B. $426.38.
　　C. $899.73.
　　D. $567.89.
　　Answer:C
　　Prepayment = (.0045)($200,000 - $60.00) = $899.73.