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Please help with the following: QUESTION 6 Consider the following statements. Statement 1: Agency RMBS represents the largest segment in the asset-backed securities market. Statement

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QUESTION 6 Consider the following statements. Statement 1: Agency RMBS represents the largest segment in the asset-backed securities market. Statement 2: The waterfall structure of an agency RMBS is designed to redistribute prepayment risk. Which of the following is most likely? 0 Only Statement 1 is correct. 0 Only Statement 2 is correct. 0 Both statements are correct. QUESTION 7 Consider the following spots rates in the market: 1-year 0.45% Z-year 1.09% 3 year 1.66% 4 year 2.15% What would be the implied "1y2y" forward rate? 0 2.54%. O 2.27%. O 2.06%. QUESTION 8 A12-year bond pays coupon quarterly. With a yield-to-maturity of 6%, the bond is trading at $978.72. The bond's coupon rate is closest to: O 5.75%. O 5.50%. O 5.00%. QUESTION 9 A bond has an annual modied duration of 7.14 and annual convexity of 66.20. The bond's yield-to-maturity is expected increase by 50 basis points. The expected price change is: O -3.40%. O 3.49%. O 6.57%

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