Which of the following are reasons that the actual prepayment rate on a specific mortgage pool backing a specific pass- through security may differ from PSA's assumed pattern? A. age of the mortgage pool and the size of the pool B. geographic location and assumability of mortgages in the pool C. age and job status of mortgagees in the pool D. level of the pool's coupon relative to the current mortgage coupon rate E. all of the above are reasons

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Which of the following are reasons that the
actual prepayment rate on a specific
mortgage pool backing a specific pass-
through security may differ from PSA's
assumed pattern?
A. age of the mortgage pool and the size of
the pool
B. geographic location and assumability of
mortgages in the pool
C. age and job status of mortgagees in the
pool
D. level of the pool's coupon relative to the
current mortgage coupon rate
E. all of the above are reasons
Transcribed Image Text:Which of the following are reasons that the actual prepayment rate on a specific mortgage pool backing a specific pass- through security may differ from PSA's assumed pattern? A. age of the mortgage pool and the size of the pool B. geographic location and assumability of mortgages in the pool C. age and job status of mortgagees in the pool D. level of the pool's coupon relative to the current mortgage coupon rate E. all of the above are reasons
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