Which of the following should have the highest yield? 30-year Treasury bond 10-year BB corporate bond. 10-year A.A corporate bond. 90 day Treasury bill QUESTION 4 There are several problems with the mortgage-backed securities market that contributed to the financial crisis. Which of the following is NOT a problem with mortgage-backed securities (MBS)? The underlying collateral (i.e., mortgages) was damaged by sub-prime lending. Fannie Mae and Freddie Mac were encouraged to buy mortgages so that more people could own homes. The investment banks started buying mortgages too. There is less incentive to make good loans because banks sell mortgage loans after they make them, separating themselves from the riskiness of the borrower Investors who engaged in credit default swaps felt "safe" in investing in higher risk MBSs because they had effectively transferred the default risk to companies like AIG. All of the other answers are factors in the financial crisis