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Which of the following is likely to have a negative effective duration? Question 2 options: 1) A high coupon, interest only mortgage-backed security that is
Which of the following is likely to have a negative effective duration? Question 2 options: 1) A high coupon, interest only mortgage-backed security that is pre-paying at a high rate. 2) A low coupon U.S. Treasury bond. 3) 2. Which of the following is likely to have a Fed Funds purchased. 4) Demand deposits 5) None of the above can have a negative effective duration
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