The pass-through rate is the coupon rate of interest promised by the issuer of a pass-through security to the investor.In most instances,the pass-through rate is:
A) Equal to the average rate of interest on all mortgages in the underlying pool
B) Lower than the lowest rate of interest on any mortgage in the underlying mortgage pool
C) Higher than the highest rate of interest on any mortgage in the underlying mortgage pool
D) None of the above
Correct Answer:
Verified
Q22: Prices of mortgage pass-through securities are:
A)Unaffected by
Q23: Which of the following is NOT a
Q24: If a mortgage pool consists of five
Q25: The practice that is implemented with MBBs
Q26: Which of the following statements regarding mortgage-backed
Q28: When evaluating an investment in a mortgage
Q29: Which of the following is FALSE regarding
Q30: When pricing mortgage pass-through securities,issuers use each
Q31: Compared to mortgage pass-though securities (MPTs),MBBs should
Q32: The investment rating for mortgage-backed bonds depends
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