Which One of the Following Is Correct Concerning the Total

question 34

Multiple Choice

Which one of the following is correct concerning the total payment amount on a PO strip?

• A)The total payment amount equals the bond's par value.
• B)The total payment amount will either equal or exceed the bond's par value.
• C)The total payment will vary based on the PSA schedule.
• D)The total payment amount will increase if interest rates decline.
• E)The total payment amount will vary if the prepayment rate varies.

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