Explain Subprime Mortgage-Backed Securities?

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: A CDO is a debt security collateralized by debt obligations, such as residential and commercial…

A: The question is asking whether a Collateralized Debt Obligation (CDO) is a type of debt security…

Q: How is the present value of a bond calculated?

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: 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: Explain constant amortizing mortgage (CAM)?

A: It is otherwise called an amortizing mortgage, is one where the principal and monthly interest…

Q: A CDO is a debt security collateralized by debt obligations, such as residential and commercial…

A: The question is asking whether a Collateralized Debt Obligation (CDO) is a type of debt security…

Q: Explain the term Fixed Interest Rate Mortgage (FRM) Loan?

A: Mortgage loans:   The mortgage is a type of loan in which a property or any other real estate is…

Q: What is the major difference between CMOs and the other mortgage-backed securities?

A: Investment in securities are traded on Secondary Market where buyer and seller purchase or sale…

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: What is a securitized Bond?

A: When the outstanding bonds are pooled together to form a new category of product and then is traded…

Q: Explain Junior Mortgages?

A: Junior mortgage: A junior mortgage may be a contract subject to a to begin with or a past contract…

Q: What is the relationship between interest rate level and bond price? Why must this relationship be…

A: Bonds are a type of long-term debt often offered by government and corporations to raise loan.

Q: What is the straight-line amortization technique for a bond discount or premium?

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

Q: why is there a market for bonds?

A: The bond market, also known as the fixed income market or debt market, is a financial marketplace…

Q: What is the bond rating system?

A: A bond rating is an assessment of a bond's credit worthiness made by a rating agency. The rating…