Concerning fannie mae-sponsored mortgage backed securities

Assignment Help Financial Management
Reference no: EM13874950

Concerning Fannie Mae-sponsored Mortgage Backed Securities (MBS): Identify which of the following statements is correct

a) The coupon rate on pass-through MBS sold to investors is always higher than the average coupon on the individual mortgages making up the pool

b) The coupon rate on pass-through MBS sold to investors is always set equal to the average coupon on the individual mortgages making up the pool

c) The coupon rate on pass-through MBS sold to investors is always lower than the average coupon on the individual mortgages making up the pool

d) The coupon rate on pass-through MBS sold to investors is sometimes higher, sometimes equal to, and sometimes lower than the average coupon on the individual mortgages making up the pool

Reference no: EM13874950

Questions Cloud

Preferred dividend increase equal the common dividend : (Preferred dividend) a company has an outstanding issue of $100.00 par value per stock. it recently declared at $7.00 per par share dividend on its common stock. how much will the company pay in annual per-share preferred dividends if the preferred i..
Explain the importance of darwin''s : explain the importance of Darwin's
About the current operating capacity : Alter Bridge Mfg., Inc., is currently operating at only 88 percent of fixed asset capacity. Current sales are $680,000. Fixed assets are $420,000 and sales are projected to grow to $830,000. How much in new fixed assets are required to support this g..
Issues of production and operations management : Total Quality Management (TQM) is a business management strategy aimed at embedding awareness of quality in all organizational processes. TQM has been widely used in manufacturing, education, call centers, government and service industries, as wel..
Concerning fannie mae-sponsored mortgage backed securities : Concerning Fannie Mae-sponsored Mortgage Backed Securities (MBS): Identify which of the following statements is correct. The coupon rate on pass-through MBS sold to investors is always higher than the average coupon on the individual mortgages making..
Movements in cross exchange rates : Movements in Cross exchange rates last year a dollar was equal to 7 Swedish kronor, and a polish zloty was equal to $.40. Today, the dollar is equal to 8 Swedish kronor, and a polish zloty is equal to $.44. By what percentage did the cross exchange r..
Demonstrated an understanding of the factors : Identified an event in the media and demonstrated an understanding of the factors that led to the stop, search, and seizure
What is the future value of this cash flow stream : If you receive $2,590 at the end of each year for the first three years and $627 at the end of each year for the next two years. What is the future value of this cash flow stream? Assume interest rate is 6%.
Compute the interest paid in the eighth year : Consider a 12-year loan with annual payments at 5%. If the loan amount is $250,000, compute the interest paid in the eighth year.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the value of the fund today

Your brother, who is 6 years old, just received a trust fund that will be worth $24,000 when he is 21 years old. If the fund earns 0.10 interest compounded annually, what is the value of the fund today?

  Future value-annuity versus annuity due

What's the future value of a 4%, 5-year ordinary annuity that pays $700 each year? Round your answer to the nearest cent. If this was an annuity due, what would its future value be? Round your answer to the nearest cent.

  Nominal and real interest rates

Write a short essay of 350-400 words for each of the following questions. Where possible, illustrate with an appropriate example in your answer. You must support your discussion with appropriate references.

  What is the expected return on the mutual fund

Consider the following capital market: a risk-free asset yielding 0.75% per year and a mutual fund consisting of 70% stocks and 30% bonds. The expected return on stocks is 10.75% per year and the expected return on bonds is 3.25% per year. What is th..

  Make the present value of both prizes equivalent

Carol has won a prize in the "Wait To Spend" lottery. Specifically Carol has won the amount of $1500 but she must wait for 10 years to receive the money. Carol is in real need of cash and would rather receive a different prize: $525 today and then re..

  The first putting green championship was held

In 1895, the first Putting Green Championship was held. The winner’s price money was $240. In 2014, the winner’s check was $1,400,000. What was the percentage in cream per year in the winner's check over this period?

  Planning your retirement and you come to the conclusion

You are planning your retirement and you come to the conclusion that you need to have saved $1,250,000 in 30 years. You can invest into an retirement account that guarantees you a 5% annual return. How much do you have to put into your account at the..

  Whats the margin level one year later

1) You decide to buy 1,000 shares of ABC Company at $50 per share with an initial margin of 50%, the call money rate is 6%. The stock has no dividend, and one year later ABC stock is at $57 per share. What’s the margin level one year later? What is y..

  Share repurchase affect the value of the company

lectronic Timing, Inc. (ETI), is a small company founded 15 years ago by electronics engineers Tom Miller and Jessica Kerr. How will this proposal affect the stock price? How will it affect the value of the company? How will a share repurchase affect..

  Explain the nature of groups and group behavior

Explain the nature of groups and group behavior within organisations you identified and discuss factors that may promote or inhibit the development of effective teamwork in organisations you identified.

  Capital rationing lead to non-optimal investment decisions

A prospectus for a bond issue will normally list both the price to the public and the proceeds to the company. Capital rationing may lead to non-optimal investment decisions.

  Compare the payments required by each mortgage

Determine the annual repayment schedule for the first two years (ie, interest, principal repayment, and balance owed) for each of the following: (Assume one payment annually) Compare the payments required by each mortgage.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd