- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 19. Mortgage-Backed Security (MBS) Instrument and Market Features
- Subject 4. Collateralized Mortgage Obligations
CFA Practice Question
The initial PAC collar refers to the upper and lower limits of ______.
B. remaining cash flows of support classes
C. prepayment speed of the underlying mortgage pool
D. effective interest rates of the accrual tranche
A. PAC tranche maturities
B. remaining cash flows of support classes
C. prepayment speed of the underlying mortgage pool
D. effective interest rates of the accrual tranche
Correct Answer: C
User Contributed Comments 1
| User | Comment |
|---|---|
| danlan2 | Principal payment schedule=C |