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- A PAC provides investors: - A) protection against extension and contraction risk - B) no protection against prepayment risk - C) only protection from

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- A PAC provides investors: - A) protection against extension and contraction risk - B) no protection against prepayment risk - C) only protection from extension risk - D) only protection against contraction risk - Select the correct answer. If PSA increased from 100 to 200 , and the PAC had a collar of 50-250, how would that PSA increase impact the cash flows to the PAC? To the support class? (1-2 sentences max.)

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