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Yogesh Agarwal
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Asked: July 2, 20222022-07-02T20:24:29+05:30 2022-07-02T20:24:29+05:30In: Alternative Inv (CFA L1)

Alternate Investment

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Q. Which of the following statements is true regarding mortgage-backed securities?

A.Insurance companies prefer the first-loss tranche.

B.When interest rates rise, prepayments will likely accelerate.

C.When interest rates fall, the low-risk senior tranche will amortize more quickly.

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