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Question
Which of the following best explains the term burn-out factor?
A. The percent of mortgage contract that is transferred from the seller to the buyer of a house.
B. The required interest spread of a pass-through security over a treasury when prepayment risk is taken into account.
C. The aggregate percent of the mortgage pool that has been prepaid prior to the month under consideration.
D. A mortgage-backed bond issued in multiple classes or tranches.
E. Bonds collateralized by a pool of assets.
Answer
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Related questions
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