Which of the Following Are Reasons That the Actual Prepayment

question 87

Multiple Choice

Which of the following are reasons that the actual prepayment rate on a specific mortgage pool backing a specific pass-through security may differ from PSA's assumed pattern?

• A)age of the mortgage pool and the size of the pool
• B)geographic location and assumability of mortgages in the pool
• C)age and job status of mortgagees in the pool
• D)level of the pool's coupon relative to the current mortgage coupon rate
• E)all of the above are reasons

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Definitions:

Series RC

A circuit in which a resistor (R) and a capacitor (C) are connected in a single series path, affecting the circuit's overall impedance and phase angle.

Total Capacitive Reactance

The overall opposition that a circuit presents to the flow of alternating current (AC) due to the capacitance in the circuit, measured in ohms.

Total Resistance

Refers to the cumulative resistance within an electric circuit, affecting the overall current flow.

Series RC

A circuit configuration consisting of a resistor (R) and capacitor (C) connected end-to-end or in series with each other, affecting the circuit's overall impedance.