Compared to mortgage pass-though securities (MPTs) ,MBBs should be priced:
A) toprovide lower yields than MPTs,because of lower prepayment risk.
B) toprovide higher yields than MPTs,because of higher prepayment risks.
C) toprovide the same yield as MPTs,because of equivalent amounts of prepayment risk.
D) none of the above.
Correct Answer:
Verified
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A) unaffected
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