- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 19. Mortgage-Backed Security (MBS) Instrument and Market Features
- Subject 5. Commercial Mortgage-Backed Securities
CFA Practice Question
The lender of a commercial loan may charge a default interest rate during the workout period so that the term of the loan is extended. The borrower can then try to arrange for refinancing or sell the property to pay off the balloon balance. The default interest rate is usually ______ the original contract rate.
B. lower than
C. the same as
A. higher than
B. lower than
C. the same as
Correct Answer: A
User Contributed Comments 0
You need to log in first to add your comment.