Question: All else being equal, with an Fixed Rate Mortgage (FRM) compared to an Adjustable Rate Mortgage (ARM), there is __________ default risk and ___________ prepayment

All else being equal, with an Fixed Rate Mortgage (FRM) compared to an Adjustable Rate Mortgage (ARM), there is __________ default risk and ___________ prepayment risk.

A. equal; equal

B. less; less

C. greater; less

D. less; greater

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