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QUESTION 7 5 points Save Answer If Interest rates rise, RMBS owners will face A. Liquidity Risk B. Credit Risk C. Extension Risk D. Contraction

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QUESTION 7 5 points Save Answer If Interest rates rise, RMBS owners will face A. Liquidity Risk B. Credit Risk C. Extension Risk D. Contraction Risk QUESTION 8 5 points Save Answer One problem with Cash Flow Matching is A. Duration changes for very steep yield curves B. Does not work with "non parallel" yield curve shifts C. Does not work with "parallel" yield curve shifts OD. Finding fixed income instruments that exactly match liability cash flows

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