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Please select the best response to complete the following sentence.
If a pass-through security is trading at a discount, and market interest rates begin to rise,
Group of answer choices
prepayments will drop and price will drop more sharply than for a normal coupon bond.
prepayments will rise and price will drop less sharply than for a normal coupon bond.
prepayments will rise and price will drop more sharply than for a normal coupon bond.
prepayments will drop and price will drop less sharply than for a normal coupon bond.
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