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please answer question 1-3. thank you. :16 PM Mon Dec 7 92%E 1.) A portfolio of collateralized mortgage bonds with 30-year maturities is being securitized.
please answer question 1-3. thank you. :16 PM Mon Dec 7 92%E 1.) A portfolio of collateralized mortgage bonds with 30-year maturities is being securitized. Explain how the structure of the cash flow of principal and interest payments on this portfolio of 30-year loans can be structured to provide tranches with different maturities such as short-term, medium-term and long-term. 2.) A portfolio of collateralized subprime mortgage loans is being securitized, Explain how the structure of the cash flow of principal and interest payments on this portfolio of subprime loans can be structured to provide tranches of different default risk such as AAA, BBB and junior equity. 3.) A bank buys a bond from ABC which is a risky firm. Explain how a Credit Default Swap on the bond could be used by: a.) The bank to hedge its risk b.) A speculator for speculation :16 PM Mon Dec 7 92%E 1.) A portfolio of collateralized mortgage bonds with 30-year maturities is being securitized. Explain how the structure of the cash flow of principal and interest payments on this portfolio of 30-year loans can be structured to provide tranches with different maturities such as short-term, medium-term and long-term. 2.) A portfolio of collateralized subprime mortgage loans is being securitized, Explain how the structure of the cash flow of principal and interest payments on this portfolio of subprime loans can be structured to provide tranches of different default risk such as AAA, BBB and junior equity. 3.) A bank buys a bond from ABC which is a risky firm. Explain how a Credit Default Swap on the bond could be used by: a.) The bank to hedge its risk b.) A speculator for speculation
please answer question 1-3. thank you.
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