Financial assets such as mortgages, credit card receivables, and auto loan receivables are often bundled up, placed

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Financial assets such as mortgages, credit card receivables, and auto loan receivables are often bundled up, placed in a bank trust department, and then used as collateral for publicly traded bonds. Bond prices typically rise when interest rates decline, but bonds backed by mortgages frequently fall when rates decline. Why might this happen?
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Intermediate Financial Management

ISBN: 978-1285850030

12th edition

Authors: Eugene F. Brigham, Phillip R. Daves

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