Higher prepayments have what impact on the effective duration of a mortgage passthrough security? a. They decrease

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Higher prepayments have what impact on the effective duration of a mortgage passthrough security?

a. They decrease effective duration for all maturity mortgages.

b. They increase effective duration for all maturity mortgages.

c. They increase (decrease) effective duration for short (long) maturity mortgages.

d. They increase (decrease) effective duration for long (short) maturity mortgages.

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Fundamentals Of Investments Valuation And Management

ISBN: 9781266824012

10th Edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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Question Posted: Jan 02, 2024 05:43 AM

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Higher prepayments have what impact on the effective duration of a mortgage passthrough security? a. They decrease

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The correct answer is c They increase decrease effective duration for short long maturity mortgages ...View the full answer

Fundamentals Of Investments Valuation And Management

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