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Which of the following mortgage-backed security derivatives is correctly defined? Group of answer choices below: A. Planned amortization class tranches allow prepayments at only one
Which of the following mortgage-backed security derivatives is correctly defined? Group of answer choices below:
A. Planned amortization class tranches allow prepayments at only one specified speed.
B. Targeted amortization class tranches allow prepayments at only one specified speed.
C. An interest-only tranche performs better when prepayments speed up.
D. A principal-only tranche performs better when prepayments slow down.
E. The interest rate on a floater tranche moves in the opposite direction from market rates.
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