Suppose you are told that the cash flow yield of a pass-through security is 9% and that

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Suppose you are told that the cash flow yield of a pass-through security is 9% and that you are seeking to invest in a security with a yield greater than 8.8%.

a. What additional information would you need to know before you might invest in this pass-through security?

b. What are the limitations of the cash flow yield for assessing the potential return from investing in a mortgage-backed security?

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Bond Markets Analysis And Strategies

ISBN: 9780130402660

4th Edition

Authors: Frank J. Fabozzi

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Question Posted: Jul 27, 2024 11:00 AM

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Suppose you are told that the cash flow yield of a pass-through security is 9% and that

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