A PO Is a "Principal Only" MBS and an IO

question 8

Multiple Choice

A PO is a "principal only" MBS and an IO is an "interest only" MBS. As prepayments increase which of the following happens.

• A) Both the PO and IO become more valuable
• B) The PO becomes more valuable and the IO becomes less valuable
• C) The PO becomes less valuable and the IO becomes more valuable
• D) Both the PO and IO become less valuable

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Definitions:

Prejudices

Preconceived opinions or judgments about people or ideas that are not based on reason or actual experience.

Biased Language

Language that shows prejudice, preference, or partiality towards a particular viewpoint, group, or idea, often resulting in unfair representation.

Neutral Language

Language that is unbiased, does not express opinions, and aims to avoid offending or alienating any group of people.

"You" Attitude

A communication approach that focuses on the audience's needs and perspectives, often used to create a more engaging and persuasive message.