26-76 A claim to the present value of the interest payments made by the mortgage holders in a GNMA pool is
A)a CARS.
B)an IO strip.
C)a CARD.
D)a PO strip.
E)a prepayment claim.

Name: 26-76 A claim to the present value of the interest payments made by the mortgage holders in a GNMA pool is A)a CARS. B)an IO strip. C)a CARD. D)a PO strip. E)a prepayment claim.
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Question

Quizplus · Accepted Answer

An IO (Interest-Only) strip represents a claim to the interest payments made by mortgage holders, which is separate from the principal payments.

26-76 a Claim to the Present Value of the Interest