- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 19. Mortgage-Backed Security (MBS) Instrument and Market Features
- Subject 2. Mortgage Loans and Their Characteristic Features
CFA Practice Question
The type of mortgage in which there are no scheduled principal repayments over the entire life of the loan is referred to as a ______.
B. balloon mortgage
C. partially-amortizing mortgage
A. bullet mortgage
B. balloon mortgage
C. partially-amortizing mortgage
Correct Answer: A
In a bullet loan, payment of the entire principal is due at the end of the loan term.
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