If the Prepayment Schedule for a Mortgage Pool Increases to 100

question 21

Multiple Choice

If the prepayment schedule for a mortgage pool increases to 100 PSA from 50 PSA,the related interest-only strips will ________ in value and the related principal-only strips will ________ in value.

• A) decrease; decrease
• B) decrease; increase
• C) increase; decrease
• D) increase; increase
• E) remain constant; remain constant

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Definitions:

Goal-setting Program

A structured approach to setting and achieving specific, measurable, attainable, relevant, and time-bound goals.

Obstacles

Factors, objects, or conditions that impede progress or make it difficult to achieve an objective.

Length of Workday

The total number of hours an employee is expected to work within a single day.

Goal Commitment

The level of determination and attachment an individual has towards achieving a set objective.