Which one of the following correctly applies to a mortgage passthrough bond?
A) The primary collateral for the bond is the underlying pool of mortgages.
B) All interest received is immediately passed through while principal payments are held until the bond matures.
C) Each bond represents one home mortgage.
D) These bonds are created via a process known as mortgage collaring.
E) All of these bonds are guaranteed by the full faith and credit of the U.S. government.
Correct Answer:
Verified
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