11-15.Which of the following is true?
A) even a slight increase in the default rate of a sinking fund has a dramatic impact on its balance
B) a large increase in the initial amount of over-collateralization has a minimal impact on the terminal fund balance
C) an increase in the yield on a sinking fund has a negative effect on the fund balance
D) the fund balance will rise with decreases in the PSA prepayment rate
Correct Answer:
Verified
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
Q7: Which is true?
A) the value of a
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
Q13: 11-19.The CPR of passthroughs refers to:
A) coupon
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