What is prepayment risk? How does prepayment risk affect the cash flow stream on a fully amortized

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What is prepayment risk? How does prepayment risk affect the cash flow stream on a fully amortized mortgage loan? What are the two primary factors that cause early payment?

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Financial Markets and Institutions

ISBN: 978-0077861667

6th edition

Authors: Anthony Saunders, Marcia Cornett

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Question Posted: Jan 27, 2015 08:48 AM

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What is prepayment risk? How does prepayment risk affect the cash flow stream on a fully amortized

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Prepayment is the process of paying principal on a debt before the due date In the case of an amorti...View the full answer

Financial Markets and Institutions

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