Compared to Mortgage Pass-Though Securities (MPTs),MBBs Should Be Priced to Provide

question 19

Multiple Choice

Compared to mortgage pass-though securities (MPTs) ,MBBs should be priced to provide:

• A)Lower yields,because the MBB issuer bears lower prepayment risk
• B)Higher yields,because the MBB issuer bears higher prepayment risks
• C)The same yields,because of equivalent amounts of prepayment risk
• D)None of the above

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