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please solve both questions. . JL. UIDE 40f 16 ( complete HW Score: 0% 0 of 16 pts P 15-4 (similar to) Descnbe the kind

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JL. UIDE 40f 16 ( complete HW Score: 0% 0 of 16 pts P 15-4 (similar to) Descnbe the kind of secure the US government es to face the federal (Select the best choice below) Question Help O A One type of security used by the US government to finance the federal debt is Treasury bills which are pure discount bonds wihnatures of one year or less OB. Treasury notes, another source of debt funding are coupon bonds with semarul coupon payments and matures between 1 and 10 years OC. A longer term funding instrument is the Treasury bond with semi-arul coupons and maturies onger than 10 years OD TIPS are bonds with coupon payments that adjust with the rate of inflation. The final payment is protected against deflation since the value of the final payment is the maximum between the face value andre inflation-adjusted face value OE. All of the above are examples of securities used by the US government to finance the federal del Score: 0 of 1 pt 7 of 16 (0 complete) P 15-7 (book/static) HW Score: 0% 0 of 16 pts Question Help Describe what prepayment is in a GNMAS. (Select all of the choices that apply) DA Holders of the GNMA securities face payment is because homeowners have the option to prepay their debt whenever they decide to do so B. In particular, homeowners will prepay it interest rates rise and they can refinance at the new interest rate. This is precisely when the holders of GMA securities would like to avoid payments, since they can only reinvest a higher interest rate C. Holders of the GNMA securities face payment is because GNMA has the option to force homeowners to repay their debt whenever interest rates rise D. In particular, homeowners will prepay if interest rates fal and they can obtain new debt at a lower interest rate. This is precisely when the holders of GMA securities would like to avoid payments, since they can only reinvest at a lower interest rate

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