Why is the cash flow of a residential mortgage loan unknown

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Reference no: EM131279722

1. What is the difference between a municipal tax-backed bond and a municipal revenue bond?

2. a. Why is the cash flow of a residential mortgage loan unknown?

b. In what sense has the investor in a residential mortgage loan granted the borrower (homeowner) a loan similar to a callable bond?

Reference no: EM131279722

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