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Need help asap Before the 2008 financial crisis, ratings on various tranches often misrepresented the true credit risk of the security. Pass throughs Collateralized debt

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Before the 2008 financial crisis, ratings on various tranches often misrepresented the true credit risk of the security. Pass throughs Collateralized debt obligation Credit swaps Collateralized mortgage obligation Other assets can be securitized besides mortgages. Some other types of securitized assets include: credit card receivables student loans automobile loans all of the above What is the duration of a four-year bond with a 7% coupon rate paid annually and a 9% yield? The face value is $1000. 3.61 years 4.32 years 4.62 years 9.35 years In a 3-class CMO, Class A has the prepayment protection while ClassC has the prepayment protection. most, least most, middle least, most least, middle The FDIC is concerned about issuance of mortgage-backed bonds (MBBs) because The agency is concerned about investors' prepayment risk. MBBs increase deposit insurance premiums. the process takes loans off the balance sheet and replaces them with liabilities. the process reduces the amount of assets available to back insured deposits. Which one of the following forms of securitization is usually "double securitization?" Mortgage-backed bonds Collateralized mortgage obligations (CMO) Pass-through Loan sale

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