Which One of the Following Will Maximize the Value of an IO

question 44

Multiple Choice

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

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Definitions:

Over-Inflated

Refers to a situation where an object, such as a tire, is filled with air or gas beyond the recommended pressure.

Center Of Treads

The midpoint across the width of tire treads, often used as a measurement reference for tire alignment and wear.

Accelerated Wear

Increased rate of wear on materials or components, often due to excessive loading, poor lubrication, or abrasive conditions, leading to premature failure.

Bias Ply

A tire construction geometry in which the plies are laid either diagonally or at an angle of 35 degrees.