Single-family mortgage pass

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A falling rate of market interest would have the following impacts on a single-family mortgage pass-through Principal Only (PO) security?

(A) Increase prepayments on loans in the pool

(B) Decrease prepayments on loans in the pool

(C) Increase the market value of the PO

(D) Both A and C

(E) Both B and C

Reference no: EM132719358

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