You Own a Mortgage Passthrough

question 6

Multiple Choice

You own a mortgage passthrough. Which one of the following statements correctly describes the payments you will receive on that security?

• A)The payments will decrease at a constant rate over the life of the security.
• B)The payments will increase at a decreasing rate over the life of the security.
• C)The payments will be fixed for the life of the security.
• D)The payments will vary depending upon the amount paid on the underlying mortgages each period.
• E)The payments will decrease based on the interest shown on the amortization schedule.