Explain Pricing Mortgage-Backed Bonds with example?

Q: What is indexed bond?

A: It is a bond with a interest rate which is connected to a index, for example, the bond market…

Q: what does the bond rating depend on?

A: It is a credit rating which represents the creditworthiness of both the corporate and the government…

Q: Explain term Buydown Loans with examples?

A: Buy down loan is a loan in which a buyer will get the loan for reduced interest rate at least during…

Q: Explain Marking the Mortgage Portfolio to Market?

A: Marking to market is the process of offsetting a buyer or seller’s position in a futures contract on…

Q: Explain Mortgage passthrough securities (MPTs)?

A: Answer: One form of mortgage backed securities is a pass through security. Mortgage securities allow…

Q: . How is the value of a bond determined?

A: Bond valuation: It may be a method utilized to decide a given bond's hypothetical reasonable value.…

Q: What effect does collateral have on a bond's interest rate? What effect does subordination have on a…

A: There are various factors that impact a bond's price. We discount back the future cash flows of a…

Q: When might a bondholder use a convertibility feature?

A: This question illustrates how a bondholder can benefit from the convertibility provision.

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: 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: What is the stated rate for a bond?

A:

Q: What ratios are likely to be of greatest interest to the banker or trade creditor? To the…

A: The objective of the question is to identify the financial ratios that are of greatest interest to a…

Q: Why bonds is an investment opportunity and its benefits to bondholder?

A: Bonds are safe investment for investors and it is form of debt provided by investors to companies.…

Q: Which of the following bond is the safest?  Treasury Bonds Corporate Bonds Savings Bonds

A: Bonds are a form of liability for the business, for which regular interest payments along with value…

Q: What is a bond payable?

A: Long-Term LiabilitiesLong-term liabilities are the obligations of the business that need not be paid…

Q: How is the price determined for a bond (or bond issue)?

A:

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: What effect does collateral have on the interest rate paid on a bond? Subordination also has an…

A: Many variables influence the interest rate on a bond, including collateral, subordination, and so…

Q: What does it mean to amortize a bond premium or discount? Why is it necessary?

A: Introduction: A bond is a contract between the bond lender and the bondholders. The two most common…

Q: What variables influence bond market rates

A: This question deals with the variables influence bond market rates

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: ences the bond market's interest rates

A: Step 1 Borrowing profits are strongly influenced by monetary policy—in particular, the interest rate…

Q: Explain Subprime Mortgage-Backed Securities?

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

Q: Explain the Evolution of the Secondary Mortgage Market?

A: The secondary mortgage market is defined as a market created for the purpose and sale of existing…

Q: What are the major advantages of using issuing bonds?

A: Bond is one of sources for the company to raise the funds. Bonds can be issued at par or at premium…

Q: How do I calculate the value of a bond

A: A bond is a debt instrument with which a shareholder credits cash to an entity, which can be a…