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26-34 a Bad News Effect of Increased Mortgage Prepayments on a Mortgage

question 106

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26-34 A bad news effect of increased mortgage prepayments on a mortgage pool caused by decreasing market interest rates includes a reduction in the discount rate on the mortgage cash flow.


Definitions:

Task

A piece of work to be done or undertaken, often requiring effort or skill.

Hochschild

Likely refers to Arlie Russell Hochschild, a sociologist known for her work on emotions, gender, and labor relations.

Suppressing Feelings

The act of intentionally withholding or hiding one's emotional responses or feelings from external expression or recognition.

Cultivates

To foster the growth of something or improve a skill through education, practice, or by nurturing relationships or communities.

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