The _________________ is the risk that mortgages will be paid off early and the funds will have to be reinvested at a lower return.

Name: The _________________ is the risk that mortgages will be paid off early and the funds will have to be reinvested at a lower return.
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Prepayment risk refers to the possibility that a borrower will pay off their mortgage before the end of the term, which can cause the investor to lose out on potential returns if the funds have to be reinvested at a lower rate.

The _________________ Is the Risk That Mortgages Will Be Paid