Investors seeking higher income may be interested in mortgage-back securities. To prepare a cash flow analysis on these, the most important of the following factors is:

Investors seeking higher income may be interested in mortgage-back securities. To prepare a cash flow analysis on these, the most important of the following factors is:



A) the quality of the mortgages.

B) whether there is a real estate "bubble."

C) current tax rates.

D) the average maturities.



Answer: D) the average maturities.


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