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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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