The single monthly mortality rate (SMM) most likely: A. Increases as extension risk rises. B. Decreases as
Question:
The single monthly mortality rate (SMM) most likely:
A. Increases as extension risk rises.
B. Decreases as contraction risk falls.
C. Stays fixed over time when the standard prepayment model remains at 100 PSA.
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The correct answer is A Increases as extension risk rises Single monthly mortality rate SMM is ...View the full answer
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