Question: Answer the below questions. (a) What is a PO security? What is an IO security? (b) How is the price of an interest-only security expected

Answer the below questions.
(a) What is a PO security? What is an IO security?
(b) How is the price of an interest-only security expected to change when interest rates change?

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a In early 1987 stripped MBS began to be issued where all the interest is allocated to one class the IO class and the entire principal to the other class the PO class The IO class receives no principa... View full answer

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