alleryStart learning →What does "amortized" mean for most securitizations?
ANo principal is ever repaid
BPrincipal is repaid only at maturity
CPrincipal is repaid gradually
DInterest is paid at maturity only
Answer & Solution
Correct answer: C. Principal is repaid gradually
Amortization means principal is paid back gradually rather than as a lump sum at maturity.
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