Which One of the Following Is Required for the Cash

question 3

Multiple Choice

Which one of the following is required for the cash flows on a PAC bond to be predictable?

• A)market interest rates must remain constant
• B)market interest rates must steadily decline
• C)mortgage prepayments must remain within the PAC collar
• D)PAC support bonds must be prepaid in a timely manner
• E)mortgage prepayments must exceed the specified PSA schedule

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Definitions:

Surveillability

The ability or extent to which activities, behaviors, or information can be monitored, watched, or observed.

Burglary

The illegal entry into a building with the intent to commit a crime, particularly theft.

Guard Dogs

Dogs trained to protect property and people by watching over them and providing a deterrent to potential intruders or threats.

Fences and Locks

Physical security measures used to protect property and deter unauthorized access.