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    Fixed Income Analysis
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    Exam 4: Introduction to Asset-Backed Securities
  5. Question
    For a Mortgage Pass-Through Security, Which of the Following Risks
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For a Mortgage Pass-Through Security, Which of the Following Risks

Question 20

Question 20

Multiple Choice

For a mortgage pass-through security, which of the following risks most likely increases as interest rates decline?


A) Balloon
B) extension
C) Contraction

Correct Answer:

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