A rising rate of market interest would have which of the following impacts on a mortgage pass-through security?
A) Increase the market value of the MPT
B) Decrease the market value of the MPT
C) Increase or decrease,depending on whether the MPT was issued at a premium or a discount
D) The market rate of interest has no impact on the market value of a MPT
Correct Answer:
Verified
Q6: A 25-year maturity mortgage-backed bond is issued.The
Q7: In 2008,Fannie Mae was spun off in
Q8: A 10-year maturity mortgage-backed bond is issued.The
Q9: The secondary mortgage market enables mortgage banking
Q10: When market interest rates exceed the coupon
Q12: One difference between mortgage securities and corporate
Q13: The standard PSA prepayment curve assumes prepayments
Q14: Which of the following is NOT a
Q15: Generally,prices for zero coupon mortgage-backed bonds are
Q16: The Federal Home Loan Mortgage Corporation's (FHLMC)primary
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents