Question: Two loans, A & B, have similar characteristics except prepayment rates. Loan A has high prepayment payments and Loan B has no prepayment. Loan A

Two loans, A & B, have similar characteristics except prepayment rates. Loan A has high prepayment payments and Loan B has no prepayment. Loan A than Loan B. I. has lower default risk. II. has lower interests. III. will mature more quickly. I only I and II only II and III only O 1, II, & III None of the above choices

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