Question: Compared to mortgage pass - through securities ( MPTs ) , MBBs should be priced to provide: Higher yields, because the MBB issuer bears higher

Compared to mortgage pass-through securities (MPTs), MBBs should be priced to provide:
Higher yields, because the MBB issuer bears higher prepayment risks
Lower yields, because the MBB issuer bears lower prepayment risk
The same yields, because of equivalent amounts of prepayment risk

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