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QUESTION 2 You buy an Interest Only Strip. The price at the time of purchase reflects a 12% expected annual prepayment rate. One hour after
QUESTION 2 You buy an Interest Only Strip. The price at the time of purchase reflects a 12% expected annual prepayment rate. One hour after your purchase, the expected annual prepayment rate falls to 6%. The value of your security should? remain the same the answer cannot be determined with the given information fall O rise
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