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Assume that a pass through security has been stripped and the principal only and interest only components are sold separately. Choose the answer that best
Assume that a pass through security has been stripped and the principal only and interest only components are sold separately. Choose the answer that best completes the following sentence: If prepayments increase, O the principal only cash flow yield will go down and the interest only cash flow yield will go down. the principal only cash flow yield will go down and the interest only cash flow yield will go up. the principal only cash flow yield will go up and the interest only cash flow yield will go up. the principal only cash flow yield will go up and the interest only cash flow yield will go down
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