26-34 A bad news effect of increased mortgage prepayments on a mortgage pool caused by decreasing market interest rates includes a reduction in the discount rate on the mortgage cash flow.
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Q27: 26-41 The creation and sale of CMOs
Q28: 26-24 Investors in GNMA pass-through securities are
Q29: 26-28 The ability to refinance a mortgage
Q30: 26-33 The call option held by the
Q31: 26-35 A good news effect of increased
Q33: 26-27 Prepayment risk means that realized cash
Q34: 26-30 All else equal,once a mortgage pool
Q35: 26-42 Mortgage-backed bonds are a form of
Q36: 26-37 The weighted-average life of a loan
Q37: 26-36 Prepayment models are attempts by professional
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