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Question
Which one of the following will maximize the value of an IO strip?A. prepaying all mortgages in the underlying mortgage pool
B. minimizing the duration of the underlying mortgage pool
C. maximizing the value of the PO strip
D. amortizing the bonds in the underlying pool faster than anticipated
E. creating conditions where no prepayments occur in the underlying mortgage pool
Answer
This answer is hidden. It contains 16 characters.
Related questions
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Which one of the following statements regarding an original issue $25,000 GNMA bond is correct?
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Q:
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