Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The uncertainty that the actual cash flows received by MBS investors will be different than the originally scheduled cash flows due to borrowers' ability to
The uncertainty that the actual cash flows received by MBS investors will be different than the originally scheduled cash flows due to borrowers' ability to repay/refinance mortgages early is called
A. | credit risk. | |
B. | interest rate risk. | |
C. | prepayment risk. |
A business entity that exists for the purpose of purchasing mortgages and securitizing them is
A. | a mortgage finance company. | |
B. | a special purpose vehicle. | |
C. | a mortgage bond trustee. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started