For a pool of mortgages (with no defaults) ,which of the following is false?
A) the total amount of principal (both scheduled and prepayments) that will be paid from the pool will depend upon changes in the interest rates
B) changes in the interest rate may cause the principal payments to be delayed or accelerated
C) the interest payments in any one month will depend upon the amount of principal outstanding at the beginning of the month
D) changes in the market rate of interest will affect the timing of prepayments
Correct Answer:
Verified
Q4: 11-18.If the value of the IO strip
Q5: 11-20.In any one period (month)the cash flows
Q6: 11-11.For traditional debt securities which of the
Q7: Which is true?
A) the value of a
Q8: 11-15.Which of the following is true?
A) even
Q10: 11-12.For premium passthrough securities,which of the following
Q11: The revenues associated with servicing loans include
Q12: 11-16.Which of the following is false?
A) for
Q13: 11-19.The CPR of passthroughs refers to:
A) coupon
Q14: The value of a PO will fall
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