Which is true?
A) the value of a pass-through is the sum of the component IO and PO
B) if interest rates rise above the coupon rate prepayment will accelerate
C) the acceleration of prepayment will reduce the value of the PO
D) the increase in market rates reduces the discount rate used to value the PO cash flows
Correct Answer:
Verified
Q2: One of the non-economic factors affecting the
Q3: Variables that affect the sinking fund balance
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
Q8: 11-15.Which of the following is true?
A) even
Q9: For a pool of mortgages (with no
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
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