Elaborate in details about the drawbacks of mortgage-backed bonds (MBB)

Q: Short term financing includes which of the following:

A: A company needs financial capital to carry out its various projects and thereby by increase the…

Q: What impact do interest rates have on bond prices? What are the basic assumptions that go into…

A: This question explains about the fundamental assumptions that go into establishing the value of a…

Q: A bond is like a loan. The issuer is the borrower, the holder is the lender and the coupon is the O…

A: The bond is the financial instrument used to raise money from the market.

Q: What is a mortgage pay-through bond (MPTB)?

A: Mortgage Pay-through bond: MPTBs (Mortgage Pay-through bonds) are delivered in contradiction of…

Q: characteristics of bonds  -terminology of bonds  -types of bonds?

A: BONDS Meaning- Bonds are investment securities where an investor invest money in a company or to a…

Q: How do you calculate the price of bonds if you know their par value, contract rate, and market rate

A: This question dells with  a bond's price if you know its par value, contract rate, and market rate

Q: risk and what is the relation between interest rate risk and callable bonds. Explain with the help…

A: Interest rate risk : In simple words, Interest rate risk refers to the possibility of investment…

Q: Explain why long-term bonds are subject to greater interest rate risk than short-term bonds with…

A: The objective of this question is to understand why long-term bonds are more susceptible to interest…

Q: Which of the following types of debt securities protect investors against interest rate risk?   a.…

A: An extendable bond  is a type of debt security that includes an option Which allows the bondholder…

Q: How do interest rates affect bond valuations? What are the key assumptions in valuing a bond?

A: Bonds are the form of debt payable by the company. Interest rates on bonds to be paid is coupon…

Q: What is meaning bond? And then try to determine the differences areas between bond and loan.

A: Bonds: A bond, also recognized as a static-income security, is a debt instrument shaped for the…

Q: where do the collateral and security in the mortgage market belong? a. securities b. properties…

A: Collateral and security in the mortgage market belong to a. securities.

Q: Which are the major types of mortgage-backed securities currently in use?

A: Following are the major types of mortgage-backed securities currently in use: Pass-through MBS It…

Q: What is the relationship between interest rates and bond valuations? What are the fundamental…

A: A bond is borrowing security issued by the company to raise funds from the market by making an…

Q: Which of the following best describes a bond?     Short-term debt security      Long-term debt…

A: Bonds are debt instruments issued by companies and other entities like municipalities etc.Bonds…

Q: How does mortgage pay-through bond (MPTB) resemble a mortgage-backed bond (MBB)? How does it differ?

A: Introduction: The mortgage pay-through bonds are also called as hybrid securities. These bonds have…

Q: Explain Commercial Mortgage-Backed Securities (CMBSs)?

A: Commercial mortgage backed securities: These are fixed-income securities that are backed by…

Q: Explain how mortgage-backed securities, collateralised debt obligations and credit default swaps are…

A: Mortgage backed securities: Mortgage is a loan secured by some real estate property or commericial…

Q: What exactly is a bond's "call" feature? What impact does the call feature have on bond premium or…

A: This question explains about a bond's "call" feature the call feature have on bond premium or…

Q: Describe Why Some Bonds are Risky: Default Risk: Risk Premium: Impact of Economic Conditions

A: Bonds are a type of a financial security or a financial asset (for the investor) and like all…

Q: What impact do interest rates have on bond prices? What are the key assumptions that go into…

A: The answer are as follows

Q: From Service Leader's perspective, why are the bonds callable? What does that mean?

A: A callable bond is a kind of bond which allows the issuer to redeem the bond before it reaches its…

Q: Differentiate between mortgage bonds and debentures.

A: Mortgage bonds: Mortgage bonds are type of bonds in which holders have right towards real estate…

Q: What relationship exists between bond prices and interest rates? Describe the circumstances behind…

A: Introduction : Bonds are debt instruments issued by governments and significant enterprises to raise…

Q: what is difference between a bond and a term loan? what are the advantages of a term loan over a…

A: A bond is a fixed-income security that speaks to credit to a borrower (normally corporate or…

Q: are types of bond insurance available in the market (explain them)? How do the bond insurance affect…

A: Bond insurance are available in the market and this is done to improve the rating of bonds and…

Q: Explain callable and putable bonds in detail. Why are they important to issuing firms or investors?

A: Callable bond: The bond having the privilege to redeem by the issuer before maturity.   Puttable…

Q: Explain Mortgage pay-through bonds (MPTBs)?

A: A written agreement through which a lender gets the right to take the property that is put as a…

Q: Define the Convertible Mortgages with example?

A: A convertible mortgage is a loan which starts as an adjustable rate mortgage and can be changed into…

Q: what are treasury-indexed bonds?

A: Treasury Indexed Bonds are medium to long term securities for which the security's capital worth is…

Q: Mortgage-backed securities are commonly contained within collateralized debt obligations (CDOs).…

A: The question is asking whether mortgage-backed securities (MBS) are commonly included in…

Q: link between the price of bonds and the rate of interest?

A: There is a inverse relationship between price of bonds and rate of interest.  If interest rate…

Q: The bonds are “first mortgage” bonds, explain the statement. What does this means?

A:

Q: What is the straight-line amortization approach with regards to a bond discount or premium?

A: Bond with a straight-line amortization schedule: The straight-line amortization technique is a way…

Q: What are the similarities and difference between bonds and notes?

A: Notes payable: Notes payable is a written promise to pay a certain amount on a future date, with…

Q: What is the relationship between bond price and interest rate? Describe in fully how this…

A: Bonds are referred to as those investment securities which are issued by companies as units of…

Q: What are the similarities and differences between mortgage securities and corporate bonds?

A: Introduction: Mortgage related security is a form of security in which investor collects payment…

Q: Explain Pricing Mortgage-Backed Bonds with example?

A: The question is based on the concept of mortgage backed bonds and pricing of these bonds. The…

Q: Explain Subprime Mortgage-Backed Securities?

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

Q: What is a bond? What are some features of a bond? How do you value bonds? What factors can affect…

A: Bond is one of the most used debt instruments that are used both by private and government…

Q: Explain Mortgage pass-through securities (MPTs)?

A: Mortgage pass through securities are also known as pass through securities are mortgage backed…