Products & RisksCâu 47 / 125
A mortgage-backed pass-through security, such as a GNMA (Ginnie Mae) certificate, passes through to investors:
a.Only interest, with principal returned solely at maturity
b.Corporate dividends
c.Monthly payments of both principal and interest from a pool of mortgages
d.A guaranteed fixed price regardless of market conditions
Giải thích
A mortgage pass-through security distributes to investors the monthly principal and interest payments collected from an underlying pool of mortgages. Because homeowners can prepay their loans, these securities carry prepayment risk, which accelerates return of principal when rates fall.
Luyện miễn phí toàn bộ 125 câu hỏi — không cần đăng ký.
Câu hỏi liên quan cùng chủ đề
- Credit (default) risk on a corporate bond is best assessed by reviewing:
- A zero-coupon bond is purchased at a deep discount and:
- Which of the following bonds is generally most sensitive to a given change in interest rates?
- Prepayment risk in mortgage-backed securities means that:
- A warrant differs from a right in that a warrant:
- A money market instrument such as commercial paper is best described as:
Cập nhật gần nhất: · quy trình kiểm tra
Đội Ngũ Biên Tập PrepPass · Đối chiếu với FINRA Series 7 General Securities Representative Exam · Quy trình kiểm tra