Explain why individual loans that are of a nonamortizing type are not subject to prepayment risk?

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Introduction To Fixed Income Analytics

ISBN: 9780470572139

2nd Edition

Authors: Steven V. Mann, Frank J. Fabozzi

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Question Posted: Apr 30, 2024 01:02 AM

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Explain why individual loans that are of a nonamortizing type are not subject to prepayment risk?

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Individual loans that are of a nonamortizing type such as interestonly loans or balloon loans are generally not subject to prepayment risk due to thei...View the full answer

Introduction To Fixed Income Analytics

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