As market rates rise, prepayment speed _______, while modified duration _________.

Name: As market rates rise, prepayment speed _______, while modified duration _________.
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When market rates rise, borrowers are less likely to refinance their mortgages, leading to a slowdown in prepayment speeds. Modified duration, which measures a bond's price sensitivity to interest rate changes, lengthens as the expected cash flows are paid over a longer period due to slower prepayments.

As Market Rates Rise, Prepayment Speed _______, While Modified Duration