Multiple Choice
A ________ security divides the cash flow from the underlying pool of mortgages on a pro rata basis to the securityholders, while a ________ security is created by altering that distribution of principal and interest from a pro rata distribution to an unequal distribution.
A) mortgage pass-through; stripped mortgage-backed
B) hedged pass-through; prepayment mortgage-backed
C) hedged pass-through; stripped mortgage-backed
D) mortgage pass-through; prepayment mortgage-backed
Correct Answer:
Verified
Correct Answer:
Verified
Q1: Of the mortgage pass-through securities guaranteed by
Q2: _ is created by redistributing the cash
Q3: What does the creation of a CMO
Q4: The creation of a CMO _.<br>A) can
Q5: Which of the below statements is FALSE?<br>A)
Q7: _ is basically the interest from the
Q8: What does PSA stand for? How is
Q9: What is an IO?
Q10: In terms of market size, the agency
Q11: In regards to the conditional prepayment rate