Which One of the Following Is the Risk Associated with Receiving

question 69

Multiple Choice

Which one of the following is the risk associated with receiving a mortgage bond's principal payments sooner than anticipated?

• A)prepayment risk
• B)default risk
• C)amortized risk
• D)market risk
• E)seasoned risk

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Definitions:

Consumer's Income

The total amount of income a consumer receives from all sources, which is available to spend or save.

Budget Line

A graphical representation of all possible combinations of two goods that can be purchased with a given budget and prices.

Price Of Goods

The amount of money required to purchase a product or service, determined by factors like demand, supply, and production costs.

Business Magazine

A publication focusing on topics related to the business industry, including trends, analysis, and profiles of companies and leaders.