11-10.If prepayments of a mortgage pool accelerate:
A) it is advantageous to the PO investor
B) it is disadvantageous to the PO investor
C) it is advantageous to the IO investor
D) it is disadvantageous to both the PO and the IO investors
Correct Answer:
Verified
Q14: The value of a PO will fall
Q15: 11-17.The current industry standard for the model
Q16: 11-14.Servicing a pool of loans may NOT
Q17: A graph of the PSA model for
Q18: For mortgage securities:
A) a change in the market
Q20: 11-13.The duration of passthroughs can be measured
Q21: 11-22.An increase in the market rate of
Q22: 11-24.Payments of principal from a pool of
Q23: 11-23.A security for which the cash flows
Q24: 11-21.A security for which the cash flows
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