26-79 Which of the Following Best Explains the Term Burn-Out

question 75

Multiple Choice

26-79 Which of the following best explains the term burn-out factor?

• A)The percent of mortgage contract that is transferred from the seller to the buyer of a house.
• B)The required interest spread of a pass-through security over a treasury when prepayment risk is taken into account.
• C)The aggregate percent of the mortgage pool that has been prepaid prior to the month under consideration.
• D)A mortgage-backed bond issued in multiple classes or tranches.
• E)Bonds collateralized by a pool of assets.

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Definitions:

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A sequence of cognitive operations involved in making a choice between different alternatives.

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