13. MBS Duration (LO4, CFA2) Higher prepayments have what impact on the effective duration of a mortgage

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13. MBS Duration (LO4, CFA2) Higher prepayments have what impact on the effective duration of a mortgage passthrough security?

a. They decrease effective duration for all maturity mortgages.

b. They increase effective duration for all maturity mortgages.

c. They increase (decrease) effective duration for short (long) maturity mortgages.

d. They increase (decrease) effective duration for long (short) maturity mortgages.

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Fundamentals Of Investments Valuation And Management

ISBN: 9781260013979

9th Edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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Question Posted: Jul 25, 2024 10:01 AM

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13. MBS Duration (LO4, CFA2) Higher prepayments have what impact on the effective duration of a mortgage

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Fundamentals Of Investments Valuation And Management

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