QUESTION $6$

Which of the following statements is true about pay$-$through securities$?$

Pay$-$through securities involve a variable interest rate for investors.

Pay$-$through securities always involve a third$-$party intermediary between investors and the mortgage pool.

Pay$-$through securities involve a predetermined cash flow schedule for investors.

None of the options.

$2$ points

QUESTION $7$

The quoted maturity of a bond, which is based on the following mortgages is closest to: Mortgage X: value $-$ $$1,900,000,$ time to maturity $-27$ years, interest rate $5\mathrm{.}5\%$ Mortgage Y: value $-$ $$1,150,000,$ time to maturity $-25$ years, interest rate $5\%$ Mortgage Z: value $-$ $$1,850,000,$ time to maturity $-23$ years, interest rate $6\%$

$27\mathrm{.}00$ years

$25\mathrm{.}00$ years

$25\mathrm{.}02$ years

$25\mathrm{.}55$