Explain why mortgage investors demand a higher yield for investing in securities with call risk and extension

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Explain why mortgage investors demand a higher yield for investing in securities with call risk and extension risk. Why would a mortgage investor view mortgage prepayments negatively?

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Financial Institutions, Markets And Money

ISBN: 1704

12th Edition

Authors: David S. Kidwell, David W. Blackwell, David A. Whidbee, Richard W. Sias

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Question Posted: Sep 27, 2018 01:41 PM

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Explain why mortgage investors demand a higher yield for investing in securities with call risk and extension

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Prepayment call and extension risks are of concern to invest...View the full answer

Financial Institutions, Markets And Money

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