Concerning Principal and Interest on Fannie Mae-sponsored MBS:

A. All Principal payments falling due on the MBS are guaranteed by Fannie Mae against default, but Interest payments falling due are not guaranteed

B. All Principal payments falling due on the MBS are guaranteed by Fannie Mae against default, but only some of the Interest payments falling due are guaranteed

C. All Principal payments and all Interest payments falling due on the MBS are guaranteed by Fannie Mae

D. MBS investors could possibly lose some Principal payments if no homeowners in the pool ever choose to prepay their individual mortgage loans