Are the over-collateralizationa requirements for mortgage pay-through bonds the same as for mortgage-backed bonds?

Q: Which of the following is correct?   a. The terms, “yield rate”, “ stated rate”, and “market rate”…

A: Bonds are Debt instruments issued by Corporate to investors to raise funds. Stated Rate of Bond…

Q: Should financial institutions invest in junk bonds?

A: The answer for the theory question on junk bonds is discussed hereunder.  Dear student,  As you have…

Q: Why is the yield of bonds with credit risk higher than that of otherwise identical default-free…

A: The question is based on the concept of calculation of yield to maturity in bond investment , the…

Q: What type of account is Discount on Bonds Payable? What is its normal balance? Is it added to or…

A: Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various…

Q: In regard to a bond discount or premium, what is the effective-interest amortization method?

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: What are the potential problems or limitations of using methods, to estimate the cost of debt, that…

A: The cost of debt is the rate that is paid by a corporation on its debt. The debt may include bonds,…

Q: Explain Subprime Mortgage-Backed Securities?

A: Mortgage-backed security: A mortgage-backed security is a kind of asset-backed security which is…

Q: A bond that has only one payment, which occurs at maturity, defines which one of these types of…

A: One payment which occurs at maturity means only principle amount of bonds are refunded and no coupon…