11-25.If the value of an Interest-Only strip moves in the same direction as market interest rates,this means that an Interest-Only strip has:
A) negative duration
B) serving rights
C) value
D) inverse convexity
Correct Answer:
Verified
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
Q19: 11-10.If prepayments of a mortgage pool accelerate:
A)
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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