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An investor purchases Fannie Mae residential mortgage-backed securit.pdf

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An investor purchases Fannie Mae residential mortgage-backed securities (RMBS) and pays USD 500,000. Compared to corporate bond investments, which type of risk is this investor most likely susceptible to? a) Liquidity risk b) Reinvestment risk c) Prepayment risk.

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An investor purchases Fannie Mae residential mortgage-backed securities (RMBS) and pays USD 500,000. Compared to corporate bond investments, which type of risk is this investor most likely susceptible to? a) Liquidity risk b) Reinvestment risk c) Prepayment risk

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