1. Data show that since 1942, only 8 of the 14 recessions predicted by the stock market actually occurred. Although stocks are a leading economic indicator, what are some reasons why a stock price decline might not indicate an upcoming recession?

2. Explain each term of the following pass-through quote:

15 year, Price, Avg Life, PSA

FMAC Gold 7.0%, 97-31, 5.9, 150