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
Cannot be determined
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Personal Finance
Authors: McGraw Hill
Student Edition
0078958393, 978-0078958397
