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Describe the interest-only (IO) class and a principal-only (PO) class of mortgage pass-through strips. Explain how changes in interest rates likely affect the value of

Describe the interest-only (IO) class and a principal-only (PO) class of mortgage pass-through strips. Explain how changes in interest rates likely affect the value of each type of strip (you will need to consider the discount effect and prepayment effect).

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