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Which of the following is NOT TRUE about Mortgage Backed Securities (MBS)? A. MBS are long duration assets that investors can match with long term

Which of the following is NOT TRUE about Mortgage Backed Securities (MBS)?

A.

MBS are long duration assets that investors can match with long term liabilities

B.

MBS repays principal throughout the life of the investment

C.

There are tax benefits associated with investing in MBS

D.

All MBS are safe assets

E.

MBS provides liquidity for an otherwise illiquid asset

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