For a given mortgage pool, which of the following CMOs based on that pool is most likely

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For a given mortgage pool, which of the following CMOs based on that pool is most likely to increase in price when market interest rates increase?

a. 100/300 PAC bond

b. A-tranche sequential CMO

c. Interest-only (IO) strip

d. Principal-only (PO) strip.

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Fundamentals Of Investments Valuation And Management

ISBN: 9781266824012

10th Edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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