Fixed Income【Reading 51】Sample
Regarding a fixed-rate, level payment, and fully amortized mortgage loan, which of the following statements is least accurate? A)
| Principal repayment falls as interest payments rise over the life of the loan. |
| B)
| Payments are equal over the life of the loan. |
| C)
| Interest payments fall as principal payments rise over the life of the loan. |
|
Interest payments fall as principal payments rise over the life of the loan, not the other way around. |