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Which of the following is true? Mortgage prepayment risk: A. Rises when interest rates fall and homeowners refinance B. Is eliminated by the use of

Which of the following is true? Mortgage prepayment risk:

A.

Rises when interest rates fall and homeowners refinance
B.

Is eliminated by the use of mortgage backed securities
C.

Is felt most dramatically when interest rates rise
D.

Is only relevant with U.S. Treasury bonds
E.

Is eliminated by the purchase of a GNMA pass-through mortgage backed security

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