A mortgage pass-through security is a bond issue backed by a group of mortgages that pays fixed semi-annual coupon payments where the principle is repaid only at maturity.

Question

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A mortgage pass-through security pays monthly payments that include both interest and principal, as the underlying mortgages are paid down, rather than fixed semi-annual coupon payments with principal repaid only at maturity.

A Mortgage Pass-Through Security Is a Bond Issue Backed by a Group