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Which of the following mortgages or mortgage related securities increase in value when interest rates go up?

i. Interest only

ii. Principal only

iii. Fixed Rate Mortgage

iv. Adjustable Rate Mortgage

v. Mortgage Loan Servicing Rights

Of the above, the following would be correct:

a) 1 and 5 only

b) 2 only

c) 3 only

d) 2, 3, and 4 only

e) All of the above

Financial Management, Finance

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