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 A Focus On Interpretation And Analysis
Authors: Richard F Kochanek, A Douglas Hillman
7th Edition
1111061750, 9781111061753
