Sản phẩm & Rủi roCâu 29 / 398
A holder of a mortgage-backed pass-through security faces prepayment risk, which means:
a.Homeowners may repay their mortgages early, often when rates fall, returning principal sooner than expected
b.The issuer will always delay principal payments
c.The security can never be sold before maturity
d.The coupon rate automatically rises each year
Giải thích
Prepayment risk arises because homeowners can refinance and pay off mortgages early, usually when interest rates drop, so investors receive principal back sooner and must reinvest at lower rates. It is not about delayed payments, illiquidity, or automatic coupon increases.
Luyện miễn phí toàn bộ 398 câu hỏi — không cần đăng ký.
Câu hỏi liên quan cùng chủ đề
- Interest earned on U.S. Treasury notes and bonds is paid to investors:
- Ginnie Mae (GNMA) mortgage-backed securities differ from most other agency securities because they are:
- Fannie Mae and Freddie Mac are best described as:
- Which of the following is a characteristic of money-market instruments?
- Commercial paper is best described as:
- A negotiable certificate of deposit (jumbo CD) issued by a bank differs from a traditional retail CD mainly because it:
Cập nhật gần nhất: · quy trình kiểm tra
Đội Ngũ Biên Tập PrepPass · Đối chiếu với FINRA Securities Industry Essentials (SIE) Exam · Quy trình kiểm tra