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    Exam 20: The Secondary Mortgage Market: Cmos and Derivative Securities
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    A Tranche That Has a Coupon Interest Rate That Adjusts
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A Tranche That Has a Coupon Interest Rate That Adjusts

Question 8

Question 8

Multiple Choice

A tranche that has a coupon interest rate that adjusts in the opposite direction to its index is referred to as:


A) Reverse floater tranche
B) Inverse floater tranche
C) Upside-down floater tranche
D) Backwards floater tranche

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