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The main reason that prepayment speed in the Bear Sterns model is faster than in the baseline 100 PSA model is because: a. Alt-A borrowers

The main reason that prepayment speed in the Bear Sterns model is faster than in the baseline 100 PSA model is because:

a. Alt-A borrowers typically prepay more quickly than prime borrowers.

b. Prepayments on newer mortgages increase faster in the Bear Sterns model.

c. House prices in the Bear Sterns model rise and fall unpredictably.

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