Which of the Following Best Explains the Term Burn-Out Factor

Multiple Choice

Which of the following best explains the term burn-out factor?

A) The percent of mortgage contract that is transferred from the seller to the buyer of a house.
B) The required interest spread of a pass-through security over a treasury when prepayment risk is taken into account.
C) The aggregate percent of the mortgage pool that has been prepaid prior to the month under consideration.
D) A mortgage-backed bond issued in multiple classes or tranches.