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If a bank sells a mortgage portfolio at a price that yields the purchasers a return that is lower than the average yield on the

If a bank sells a mortgage portfolio at a price that yields the purchasers a return that is lower than the average yield on the mortgages in the portfolio, the selling price:

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  • is equal to the carrying value of the mortgages on the bank's books.
  • is lower than the carrying value of the mortgages on the bank's books.
  • is higher than the carrying value of the mortgages on the bank's books.
  • cannot be determined by examining the carrying value of the mortgages on the bank's books because the selling price is determined purely by the market.

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