CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

Change in interest rates has the biggest impact on the duration of a ______.
A. PAC tranche
B. Z-tranche
C. support tranche
Explanation: The PAC tranche is protected by the support tranche when interest rates change and prepayments speed up or slow down. A Z or accrual tranche is very close to a zero-coupon bond whose duration equals its maturity.

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