Question
You are the investor in an IO security. Suppose the projected prepayment rates decrease after you purchased the IO strip and are lower than forecasted
You are the investor in an IO security. Suppose the projected prepayment rates decrease after you purchased the IO strip and are lower than forecasted at the time of purchase. Holding all else equal, what will happen to the value of your investment?
Increase
Decrease
Stay the same
Can not be determined
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Financial Accounting The Impact On Decision Makers
Authors: Gary A Porter, Curtis L Norton
7th Edition
1439080526, 9781439080528
