Which of the Following Affect the Value of a PO

question 92

Multiple Choice

Which of the following affect the value of a PO strip based on a GNMA bond?
I. changes in the PSA schedule
II. prepayment rates
III. time value of money
IV. changes in the default rates for the underlying mortgages

• A)I and II only
• B)II and III only
• C)I, II, and III only
• D)I, II, and IV only
• E)I, II, III, and IV

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Definitions:

Series RC

A circuit configuration consisting of a resistor and a capacitor connected in series.

Apparent Power

The product of the root mean square (RMS) voltage and current in an AC circuit, measured in Volt-Amperes (VA), representing the combination of true power and reactive power.

Series RC

A circuit configuration that features a resistor (R) and a capacitor (C) connected in sequence along a single loop, affecting the circuit's overall impedance.

Power Factor

The ratio of real power flowing to the load to the apparent power in the circuit in electrical engineering, measuring the efficiency with which the current is converted into useful work.