Sylvia owned $100,000 in mortgage-backed securities which matured on March 1st. She comes into your office upset because she thought they were guaranteed, yet she only received $92,000 at maturity. How do you respond?

		Explain to Sylvia that the $8,000 represents lost interest on mortgage prepayments
		Apologize to Sylvia
		Explain to Sylvia that the $8,000 represented her portion of mortgages that went into default.
		Explain to Sylvia that each monthly payment she received included principal & interest, so she received that $8,000 over the course of the term of the MBS.