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    Exam 23: Mortgage-Backed Securities Market
  5. Question
    A Stripped Mortgage-Backed Security Is Created by Distributing the Principal
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A Stripped Mortgage-Backed Security Is Created by Distributing the Principal

Question 23

Question 23

True/False

A stripped mortgage-backed security is created by distributing the principal and interest from a pool of underlying mortgages on an equal basis to two classes of securityholders.

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