Conditional prepayment rate

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Conditional Prepayment Rate or CPR is a measure of the rate of payments from a bond that pays principal payments in excess of scheduled payments (so-called prepayments). Such bonds include mortgage-backed securities, CMOs, and ABS, which prepay at some rate usually dependent on the level of interest rates.

CPR is defined as the annualized rate of principal payments beyond the regularly scheduled payments, and is stated as a percentage of outstanding amount of the security or loan minus the scheduled payments.