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QUESTION 7 10 points Save Answer Which of the following is true of mortgage-backed securities? O They have infinite duration due to the amortization features
QUESTION 7 10 points Save Answer Which of the following is true of mortgage-backed securities? O They have infinite duration due to the amortization features of the underlying home loans. O They are not exposed to interest rate risk because their coupons are based on home mortgage payments. O Their convexity properties are the same as a standard, non-callable corporate bond. O They can have regions of both positive and negative convexity. 0 1 and 2 O 2 and 3
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