Question: a. Does high volatility in long term interest rates increase prepayment risk? Explain, why or why not. b. If the long term interest rates come

a. Does high volatility in long term interest rates increase prepayment risk? Explain, why or why not. b. If the long term interest rates come down, would the value of an M33 security increase or decrease? Please explain. For the toolbar, press ALT+F10 (PC) or ALT+FN+F1O (Mac). D T ll L n ....... L. U A..:-I \\, 4n_+ t. __ u ._ U n u A. a

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