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Check all true statements regarding TACs and Inverse TACs. TACs and Inverse TACs use only one PSA factor prepayment assumption threshold when defining their cashflows

Check all true statements regarding TACs and Inverse TACs.

TACs and Inverse TACs use only one PSA factor prepayment assumption threshold when defining their cashflows

TACs protect against contraction risk

TACs protect against extension risk

Inverse TACs protect against contraction risk

Inverse TACs protect against extension risk

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