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    Exam 27: Securitization
  5. Question
    The Discount Effect and the Prepayment Effect Are Negatively Correlated
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The Discount Effect and the Prepayment Effect Are Negatively Correlated

Question 72

Question 72

True/False

The discount effect and the prepayment effect are negatively correlated in their impact on the value of a principal-only (PO) mortgage-backed strip security.

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