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6. If a mortgage borrower makes prepayments without penalty to take advantage of falling interest rates, the lender will most likely experience: A. extension risk.
6. If a mortgage borrower makes prepayments without penalty to take advantage of falling interest rates, the lender will most likely experience: A. extension risk. B. contraction risk. C. yield maintenance. 7. Which of the following describes a typical feature of a non-agency residential mortgage-backed security (RMBS)
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