|
LOS b: Illustrate the investment characteristics, payment characteristics, and risks of mortgage passthrough securities.
Q1. Regarding mortgage passthrough securities, which of the following statements is FALSE?
A) Passthrough security investors receive the monthly cash flows generated by the underlying pool of mortgages less any servicing and guarantee/insurance fees.
B) The passthrough coupon rates are less than the average coupon rate of the underlying mortgages in the pool.
C) The passthrough coupon rates are greater than the average coupon rate of the underlying mortgages in the pool.
Q2. Which of the following most accurately describes the term "securitizing a mortgage"?
A) Including a mortgage in a pool of mortgages that is used as collateral for a mortgage passthrough security.
B) Selling shares of one mortgage to other investors.
C) Selling an entire mortgage to another investor.
Q3. Which of the following most accurately describes a mortgage passthrough security?
A) A participation certificate in a pool of mortgages.
B) A security that pays off the full amount of the mortgage if the borrower defaults.
C) An option on a pool of mortgages. | 
发表于 2009-3-23 16:46
| 