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

Two loans, A & B, have similar characteristics except prepayments. Loan A has no prepayment payments and Loan B has high prepayment payments. Loan A ______________ than Loan B.I.has higher interests.II.has higher default risk.III.will mature more quickly.

a.I only

b.II only

c.III only

d.I & II only

e.None of the above answer

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