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What is most likely to happen to the prepayment rate and average life of a typical mortgage pass-through security if mortgage interest rates increase? A)

What is most likely to happen to the prepayment rate and average life of a typical mortgage pass-through security if mortgage interest rates increase?

A) The prepayment rate will decrease and the average life will decrease.

B) The prepayment rate will increase and the average life will decrease.

C) The prepayment rate will decrease and the average life will increase.

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