Statements regarding mortgage pass-through bonds

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Which of the following statements regarding mortgage pass-through bonds (MPTBs) is FALSE?

1) MPTBs can be viewed as mortgage-backed bonds with the pass-through of principal and prepayment features of a mortgage pass-through security

2) Most MPTBs are based on residential mortgage pools and are generally overcollateralized

3) MPTBs represent an undivided equity ownership interest in a mortgage pool.

4) All of the above are false.

Reference no: EM13909186

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