PAC Bondholders Receive Payments of Principal Based on Which One

question 85

Multiple Choice

PAC bondholders receive payments of principal based on which one of the following?

• A)an amortization schedule
• B)PAC collar's lower PSA prepayment schedule
• C)PAC collar's upper PSA prepayment schedule
• D)receipt of all principal collected on the underlying pool of mortgages until the bond is paid in full
• E)zero principal from the underlying pool of mortgages until after the PAC companion bonds have been paid in full

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