George Smith is an analyst in the risk management department and he is reviewing a pool of mortgages. Prepayment risk introduces complexity to the valuation of mortgages. Which of the following factors are generally considered to affect prepayment risk for a mortgage?
I. Changes to interest rates
II. Age of the mortgage
III. Season of the year
IV. Age of the home
V. Amount of principal outstanding
A. I, II, and V
B. I, II, III, and V
C. I, II, IV, and V
D. III and IV