The primary motivation for creating a collateraliz
The primary motivation for creating a collateralized mortgage obligation (CMO) isbest described as the desire to redistribute which risk of investment in residential mortgages:
A. interest rate risk.
B. default risk.
C. prepayment risk.
参考解答
406***102
2024-11-14 20:43:35
Ans:C;
C is correct because the motivation for creating a CMO is to distribute prepayment risk among different classes of bonds.
相似问题
The table below provides a history of a fixed inco
The table below provides a history of a fixed income security’s coupon rate and the risk free rate over a five-year period:The security is most likely a(n):A step-up note B inverse floater C deferred coupon bond
An investor is considering floating-rate debt and
An investor is considering floating-rate debt and other investments to protect against unexpected increases in inflation Her
The spread between the yields on a Ginnie Mae pass
The spread between the yields on a Ginnie Mae passthrough security and a comparable Treasury security is best explained by:A prepayment risk B reinvestment risk C credit risk
For an A- rated corporate bond that has deteriorat
For an A- rated corporate bond that has deteriorating fundamentals, but is expected to remain investment grade, the greatest risk is most likely:A liquidity risk B default risk C credit spread risk
Two amortizing bonds have the same maturity date a
Two amortizing bonds have the same maturity date and same yield to maturity The reinvestment risk for an investor holding
