Real Estate Principles 3rd Edition by David Ling,Wayne Archer

تمرين 19

Consider a 30-year, 7 percent, fixed-rate, fully amortizing mortgage with a yield maintenance provision. Relative to this mortgage, a 10-year balloon mortgage with the same contract interest rate and yield maintenance provisions will primarily reduce the lender's:
A) Interest rate risk.
B) Default risk.
C) Reinvestment risk.
D) Prepayment risk.