Which of the Following Best Explains the Term Burn-Out Factor

question 13

Multiple Choice

Which of the following best explains the term burn-out factor?

• A)The percent of mortgage contract that is transferred from the seller to the buyer of a house.
• B)The required interest spread of a pass-through security over a treasury when prepayment risk is taken into account.
• C)The aggregate percent of the mortgage pool that has been prepaid prior to the month under consideration.
• D)A mortgage-backed bond issued in multiple classes or tranches.
• E)Bonds collateralized by a pool of assets.

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Definitions:

BCG Portfolio Analysis

A strategic management tool that classifies a company's business units or products based on market growth rate and market share relative to competitors.

High Rate of Growth

A situation where a business or economy expands at an above-normal rate, often leading to increased revenue or economic improvements.

Dominates Its Market

Refers to a company or a product that holds a predominant share or influence over others in the same industry or category.

SBU Level

Strategic Business Unit level; refers to a unit within a larger enterprise that focuses on specific market segments or product lines, operating with its strategic objectives and planning.