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1) Defaults always result in a loss of principal to the bondholder. True or False? 2) Non-agency CMOs are collateralized by agency passthroughs. True or

1) Defaults always result in a loss of principal to the bondholder.

True or False?

2) Non-agency CMOs are collateralized by agency passthroughs.

True or False?

3) Recoveries to bondholders are also known as default driven prepayments.

True or False?

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