Which of the following statement is (are) TRUE with regard to prepayment risk associated with MBS?:

I: There is no adverse consequence of holding an MBS when mortgage rates fall as the value of MBS will rise like other fixed income instruments.

II: Extension risk associated with rising mortgage rates refers to fall in value of MBS with rising mortgage rates and slower speed of prepayment that hampers reinvestment at rising rates

A: II only

B: None

C: I & II

D: I only