The Value of an IO Strip Will Most Likely Increase

question 54

Multiple Choice

The value of an IO strip will most likely increase when:

• A) the PSA schedule rate decreases from 200 to 100.
• B) market interest rates remain constant.
• C) prepayments increase.
• D) mortgage refinancings increase.
• E) market interest rates decrease significantly.

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Definitions:

Natural Opening

A passage by which substances or objects can enter or exit an organ or body part naturally.

Artificial Opening

A surgically created opening in the body for the discharge of bodily wastes or other purposes.

Small Incision

A minimal cut or surgical opening in the skin or body tissue, often used in less invasive procedures to reduce healing time and risk of infection.

Internal Ulcer

A sore or lesion forming on the interior lining of an organ, often in the stomach or intestines, causing pain and discomfort.