CFA CFA Level 1 CFA Level 1 Question of the Week – Fixed Income Investments

CFA Level 1 Question of the Week – Fixed Income Investments

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    • Avatar of Matt_AnalystPrepMatt_AnalystPrep
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        The correct answer is C.

        Support tranches have both more contraction risk and more extension risk than the underlying mortgage-backed security (MBS), and have a higher promised interest rate than the planned amortization class (PAC) tranche.

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