PAC Bondholders Receive Payments of Principal Based on Which One

PAC bondholders receive payments of principal based on which one of the following?

A) an amortization schedule
B) PAC collar's lower PSA prepayment schedule
C) PAC collar's upper PSA prepayment schedule
D) receipt of all principal collected on the underlying pool of mortgages until the bond is paid in full
E) zero principal from the underlying pool of mortgages until after the PAC companion bonds have been paid in full

Correct Answer:

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