CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

In which of the following structures is a principal payment never considered to be a prepayment?
A. CDOs
B. Auto loans
C. Credit card receivables
Explanation: There is no concept of prepayment for credit card receivables because there is no principal payment schedule.

User Contributed Comments 2

User Comment
dblueroom I thought pricipal amortizing period begins from the end of lockout period through the end. doesn't an amortizing loan refer to planned principal repayment?
pikusa no schedule - no prepayment
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