The table below shows the average life of the collateral and different tranches at various prepayment...
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The table below shows the average life of the collateral and different tranches at various prepayment rates. Use it to answer questions PSA 100 125 165 250 400 B. B OC.C Collateral 11.2 10.1 8.6 6.4 4.5 Which tranche has the highest extension risk? A. A D.D Tranche A 4.7 4.1 3.4 2.7 2.0 Tranche B 10.4 8.9 7.3 5.3 3.8 Tranche C 15.1 13.2 10.9 7.9 5.3 Tranche D 24.0 22.4 19.8 15.2 10.3 The table below shows the average life of the collateral and different tranches at various prepayment rates. Use it to answer questions PSA 100 125 165 250 400 B. B OC.C Collateral 11.2 10.1 8.6 6.4 4.5 Which tranche has the highest extension risk? A. A D.D Tranche A 4.7 4.1 3.4 2.7 2.0 Tranche B 10.4 8.9 7.3 5.3 3.8 Tranche C 15.1 13.2 10.9 7.9 5.3 Tranche D 24.0 22.4 19.8 15.2 10.3
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