1) Potential prepayment increases the MPTS investor's risk exposure, all other things held constant.

Group of answer choices

It depends, so this question cannot be answered as either TRUE or FALSE without more information

False

True

2)

The market value of a MPTS at any point in time after origination is:

Group of answer choices

The pool balance times one minus the market rate

The present value of the remaining expected cash flows to the investor discounted at the contract loan rate

The present value of the remaining expected cash flows to the investor discounted at the invester's required rate of return.

The pool balance times one minus the original loan rate