Question
Afalling market interest rate would generally have which of the following impacts on a mortgage-backedsecurity? a. Increase the market value of the MBS b. Decrease
Afalling market interest rate would generally have which of the following impacts on a mortgage-backedsecurity?
a. Increase the market value of the MBS
b. Decrease the market value of the MBS
c. Increase or decrease the market value of the MBS, depending on whether the MBS is issued at a premium or a discount
d. The market rate of interest has no impact on the market value of the MBS
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Financial Management Concepts and Applications
Authors: Stephen Foerster
1st edition
013293664X, 978-0132936644
