(A) The total value of the MBBs issued usually equals the value of the mortgages in the underlying pool
(B) Unlike corporate bonds, MBBs usually are issued with variable coupon rates of interest
(C) Overcollateralization of the mortgage pool assures investors that the income from mortgage will be sufficient to pay the interest on bonds and the principal upon maturity.
(D) All else being equal, the less geographic diversification in the mortgage pool, the higher the investment rating of a MBB. Get Finance homework help today