Cash-back offer from May 7th to 12th, 2024: Get a flat 10% cash-back credited to your account for a minimum transaction of $50.Post Your Questions Today!

Question DetailsNormal
$ 10.00

FIN 355 Quiz 8 ANSWER

Question posted by
Online Tutor Profile
request

Question 1

2 out of 2 points

Correct          

The profits of the issuer of a portfolio of mortgage-backed securities come from _______.

Answer

Selected Answer:      

the difference between the selling price of MBS and the cost of assembling the pool

Correct Answer:        

the difference between the selling price of MBS and the cost of assembling the pool

Question 2

2 out of 2 points

Correct          

Which of the following types of mortgage-backed securities are likely to experience an increase in cash flows after an increase in interest rates?

Answer

Selected Answer:      

CMO floater

Correct Answer:        

CMO floater

Question 3

2 out of 2 points

Correct          

Which type of CMO tranches has a promised prepayment rate?

Answer

Selected Answer:      

planned amortization class

Correct Answer:        

planned amortization class

Question 4

2 out of 2 points

Correct          

In disintermediated markets, mortgage originators usually

Answer

Available Answer
Other Similar Questions
User Profile
NUMBE...

FIN 355 Quiz 9 ANSWER

Question 1 2 out of 2 points Correct Which of the following statements about a money market hedge is not true? Answer Selected Answer: It is usually riskier than leaving foreign currency exposure uncovered Correct Answer:...
User Profile
NUMBE...

FIN 355 Quiz 8 ANSWER

Question 1 2 out of 2 points Correct The profits of the issuer of a portfolio of mortgage-backed securities come from _______. Answer Selected Answer: the difference between the selling price of MBS and the cost of assemb...
User Profile
NUMBE...

FIN 355 Quiz 7 ANSWER

Question 1 2 out of 2 points Correct The industry practice is that, when an investor in a repo transaction needs cash early, _______. Answer Selected Answer: the borrower returns the cash early upon request Correct Answer...
User Profile
NUMBE...

FIN 355 Quiz 6 ANSWER

Quiz. Question 1 2 out of 2 points Correct The premium on an existing call option should _______ when there is an increase in the volatility of the stock. Answer Selected Answer: increase Correct Answer: increase Quest...
User Profile
NUMBE...

FIN 355 Quiz 4 ANSWER

Question 1 2 out of 2 points Correct All else equal, if the stock beta increases (i.e., the stock returns become more volatile relative to the market), _______. Answer Selected Answer: the stock price will fall Correct A...

The benefits of buying study notes from CourseMerits

homeworkhelptime
Assurance Of Timely Delivery
We value your patience, and to ensure you always receive your homework help within the promised time, our dedicated team of tutors begins their work as soon as the request arrives.
tutoring
Best Price In The Market
All the services that are available on our page cost only a nominal amount of money. In fact, the prices are lower than the industry standards. You can always expect value for money from us.
tutorsupport
Uninterrupted 24/7 Support
Our customer support wing remains online 24x7 to provide you seamless assistance. Also, when you post a query or a request here, you can expect an immediate response from our side.
closebutton

$ 629.35