Paulson (the hedge fund manager in the Goldman Sachs case) sought to bet against ________ mortgages, thinking they would be the first to default when interest rates rose. Question 18 options: fixed rate mortgages. adjustable rate mortgages growing equity mortgages. prime mortgages
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Paulson (the hedge fund manager in the Goldman Sachs case) sought to bet against ________ mortgages, thinking they would be the first to default when interest rates rose.
Question 18 options:
|
|
fixed rate mortgages. |
|
|
adjustable rate mortgages |
|
|
growing equity mortgages. |
|
|
prime mortgages |
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- You hold a portfolio of mortgages and you want to hedge out the prepayment risk. You will ________ a (principal only) PO CMO. Question 38 options: sell buy you wouldn't trade a PO CMOExplanation it correctly Q)Which of the following interest rates is usually the highest? Multiple Choice 30-year mortgage rate 20-year Treasury bond rate consumer credit-card rate prime rate of banksM3
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