After Month 30, Assuming That Prepayments Remain Within the PAC

question 53

Multiple Choice

After month 30, assuming that prepayments remain within the PAC collar, the holders of a PAC bond will receive which one of the following payments?

• A)a fixed principal payment only
• B)a fixed interest payment only
• C)a fixed principal payment plus a declining interest payment
• D)a declining principal payment only
• E)a declining principal payment and a declining interest payment

---

Definitions:

Dual-Code Encoding

A theory suggesting that information is stored in memory as both verbal descriptions and visual images.

Semantic Level

Relates to the meaning of words and language, including how people understand and interpret words and sentences.

Memory Process

The series of steps that information goes through to be encoded, stored, and retrieved in the human brain.

Storage

The retention of information or material over time in the human memory system or in digital or other media.