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Given two otherwise identical pools of mortgage contracts, contracts in pool A are expected to experience a higher prepayment rate relative to those in pool

Given two otherwise identical pools of mortgage contracts, contracts in pool A are expected to experience a higher prepayment rate relative to those in pool B. In an economic environment where interest rates are anticipated to rise, how does the value of the pass-through security A compare to that of B?

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Interest rate movement does not impact mortgage pass-through securities, so A=B.

A>B

B>A

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