Which of the following is not true regarding prepayments?
A)The greater the prepayments, the shorter the security's duration.
B)Prepayments are relatively low during the first two years of a mortgage.
C)Mortgages to older people tend to have more prepayments than mortgages to younger people.
D)Prepayments increase as interest rates fall.
E)all of the above are true

Question

Quizplus · Accepted Answer

Mortgages to younger people tend to have more prepayments as they often have more mobility and may move or refinance more frequently.

Which of the Following Is Not True Regarding Prepayments