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    Exam 4: Introduction to Asset-Backed Securities
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    If Interest Rates Increase, an Investor Who Owns a Mortgage
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If Interest Rates Increase, an Investor Who Owns a Mortgage

Question 24

Question 24

Multiple Choice

If interest rates increase, an investor who owns a mortgage pass-through security is most likely affected by:


A) credit risk.
B) extension risk.
C) contraction risk.

Correct Answer:

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