- CFA Exams
- CFA Level I Exam
- Study Session 14. Fixed Income (1)
- Reading 45. Introduction to Asset-Backed Securities
- Subject 3. Residential Mortgage Loans
CFA Practice Question
During the lockout period, ______ is (are) paid out to non-amortizing security holders.
II. principal prepayments
III. interest only
IV. nothing
I. scheduled principle repayments
II. principal prepayments
III. interest only
IV. nothing
Correct Answer: III
By the way, there is no "scheduled principle payments/prepayment" concept in non-amortizing securities.
User Contributed Comments 0
You need to log in first to add your comment.