The Total Payment Amount on an IO Strip Is

question 17

Multiple Choice

The total payment amount on an IO strip is:

• A)fixed.
• B)equal to the interest rate multiplied by the par value multiplied by the PSA rate schedule.
• C)equal to the par value multiplied by the interest rate.
• D)unknown until all payments have been made.
• E)equal to the total interest computed on the bond's amortization schedule.

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