If a Mortgage Pass-Through Experiences Smaller Prepayments Than Expected Early

question 48

Multiple Choice

If a mortgage pass-through experiences smaller prepayments than expected early on in the life of the security,the result will be that pass-through holders will receive ________ than expected cash flows early on and ________ than expected cash flows later on.

• A)greater; less
• B)greater; greater
• C)less; greater
• D)less; less
• E)less; no different

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