As a financial adviser to individual investors, your boss has asked you to write a memo to him so that he can recommend a mortgage-backed bond to a client.The client has a particular corporate bond in mind, but your boss thinks that a pass-through mortgage-backed security would provide a better yield at the same risk level and maturity. The bond that the client is considering is a 7-year, AA-rated bond with a 6.75% coupon.When it matures, the proceeds will be used for and are matched exactly with the cost of his daughters college education, which will be paid in one lump sum.The bond your boss favors is a pass-through MBS (also 7-year with an AA rating), featuring a 7.15% coupon. Your economic research department just released a research report that predicts that interest rates are going to decline over the next several years to historical lows.

Write a memo to your boss of at least 300 words that provides the following:

Your recommendation

At least 3 reasons you considered to develop your recommendation

As a financial adviser to individual investors, your boss has asked you to write a memo to him so that he can recommend a mortgage-backed bond to a client.The client has a particular corporate bond in mind, but your boss thinks that a pass-through mortgage-backed security would provide a better yield at the same risk level and maturity. The bond that the client is considering is a 7-year, AA-rated bond with a 6.75% coupon.When it matures, the proceeds will be used for and are matched exactly with the cost of his daughters college education, which will be paid in one lump sum.The bond your boss favors is a pass-through MBS (also 7-year with an AA rating), featuring a 7.15% coupon. Your economic research department just released a research report that predicts that interest rates are going to decline over the next several years to historical lows.

Write a memo to your boss of at least 300 words that provides the following:

Your recommendation

At least 3 reasons you considered to develop your recommendation