Which One of the Following Is Defined as the Yield

question 17

Multiple Choice

Which one of the following is defined as the yield to maturity for a mortgage-backed security computed on an assumed prepayment pattern?

• A) payment yield
• B) assumed yield
• C) current yield
• D) cash flow yield
• E) amortized yield

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Definitions:

Financial Advisor

A professional who provides expert advice on personal finance and investment decisions.

Investor

An individual or entity that allocates capital with the expectation of receiving financial returns.

Assignee

A party to whom a right or property is legally transferred.

Loan Payments

Regular payments made towards settling a loan, typically consisting of both principal and interest components.