10. Security and Seniority (S25.1) a. Residential mortgages may stipulate either a fixed rate or a variable...

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10. Security and Seniority (S25.1)

a. Residential mortgages may stipulate either a fixed rate or a variable rate. As a borrower, what considerations might cause you to prefer one rather than the other?

b. Why might holders of mortgage pass-through certificates prefer mortgages with floating rates?

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