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In: Finance

A fall in interest rates is most likely to decrease the interest rate risk of a...

A fall in interest rates is most likely to decrease the interest rate risk of a ______. A. support tranche B. Z-tranche C. PAC tranche

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ANSWER

PAC TRANCHE

A fall in interest rates is most likely to decrease the interest rate risk of a PAC TRANCHE

A planned amortization class (PAC) tranche is a type of asset-backed security designed to protect investors from prepayment risk and extension .


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