Since 1 Basis Point = .01% = $.10, 140 Basis Points = 1.40% = $14.00. Expanded authority of the national government has traditionally been preferred by A When interest rates rise, the price of the tranche fallsB. \text {Accounts receivable} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots & 217,000\\ These trades are settled through NSCC - the National Securities Clearing Corporation. The 13th Amendment to the Constitution established dual federalism. II and IIID. at maturity, Series EE bonds:A. are issued at a discount to faceB. Some companies do not write the endorsement. Fannie Mae (FNMA) and Freddie Mac (FHLMC) issue mortgage-backed pass through certificates. d. they are the source of the drive to capture moderate voters and win elections. d. candidates took control of the general election process from the party organization. Which of the following statements are TRUE about CMOs in a period of rising interest rates?I CMO prices fall slower than similar maturity regular bond pricesII CMO prices fall faster than similar maturity regular bond pricesIII The expected maturity of the CMO will lengthen due to a slower prepayment rate than expectedIV The expected maturity of the CMO will lengthen due to a faster prepayment rate than expected A. I and IIIB. B) they are considered safer than corporate debt securities. Approximately how much will the customer receive, disregarding commissions and accrued interest? Added 2 hours 56 minutes ago|3/2/2023 12:18:02 AM. A. b. they are able to exert power over the nomination of candidates. C. They enumerated rights and listed what the government was restricted from doing. Policies are usually written in increments of one million Can this binomial distribution be approximated with a normal distribution? this account. Which statements are TRUE regarding the principal repayments for Companion CMO tranches?I Principal repayments made earlier than expected are applied to the Companion class prior to being applied to the Planned Amortization classII Principal repayments made earlier than expected are applied to the Planned Amortization class prior to being applied to the Companion classIII Principal repayments made later than expected are applied to the Companion class prior to being applied to the Planned Amortization classIV Principal repayments made later than expected are applied to the Planned Amortization class prior to being applied to the Companion class A. I and IIIB. All of the following statements concerning party identification in the electorate are true EXCEPT a. I, III, IVD. Which underlying policy is not required by a personal umbrella policy? The bonds are sold at the bid price of 98-27 = 98 and 27/32nds = 98.84375% of $5,000 par = $4,942.19. They were the first written plan for the government of the United States. Newer CMOs divide the tranches into PAC tranches and Companion tranches. $5,090.00. = 2 5/20 e. states write the laws that dictate party structure. $93.75B. the maturity of the security is likely to extend and principal will be returned to the customer at a slower rate than anticipated, D. he will be able to sell the mortgage backed securities at a large profit because of their long maturity. Which Amendment? If interest rates rise, then homeowners will defer moving at the anticipated rate, since they have a "good" deal with their existing mortgage. T-BondD. The best answer is B. If market interest rates fall, the homeowners will repay their mortgages faster because they will refinance and use the proceeds to pay off their old high rate mortgages that collateralize this mortgage-backed security. 2012)]. Which U.S. Government security gives an assured stream of interest payments for several years? When interest rates rise, the interest rate on the tranche fallsD. Refer to RadioShack's balance sheet in Appendix A. Only mortgage backed pass-through certificates are used as the backing for CMOs - and Ginnie Mae (Government National Mortgage Assn. What represents the correct order of Piagets stages of cognitive development? The price movements of IOs are counterintuitive! Treasury Notes are issued in book entry form only. Dealers typically quoted GNMA securities at 50 basis points over equivalent maturity U.S. Government BondsC. C) GNMAs are considered to be the riskiest of the agency issues. All of the following statements regarding Control Accounts are true EXCEPT:A. C. C II and IV. American political parties are decentralized for all of the following reasons EXCEPT a. the nature of the federal electoral structure leads to decentralization. = 2 1/4. A security which gives the holder an undivided interest in a pool of mortgages is known as a(n): A. equity real estate investment trustB. Which of the following are TRUE statements regarding government agencies and their obligations?I Fannie Mae is a publicly traded companyII Fannie Mae is a U.S. Government AgencyIII Fannie Mae debt securities are negotiableIV Fannie Mae debt securities are non-negotiable A. I and IIIB. Which investment gives the greatest protection against purchasing power risk? The maximum maturity on Treasury Bills is 1 year. It is administered by FEMA The Regular Program allows coverage on a single family dwelling up to $250,000 due to flooding Yield quotes on CMOs are based on the expected life of the tranche that is quoted. each tranche has a different yieldC. All of the following are true statements about the American legal system except: a. defined by the U.S. Constitution b. each branch has a separate sphere of authority (checks) c. each branch of government is subject to review by the other branches (balances) d. decisions by each branch of government may be overturned by administrative agency courts You'll get a detailed solution from a subject matter expert that helps you learn core concepts. If the mortgages backing a Ginnie Mae Pass Through Certificate are prepaid (if interest rates have dropped), the certificate holder receives payments that are a return of principal, and that, when reinvested at lower current rates, produce a lower return (this is reinvestment risk). The best answer is C. Treasury Receipts represent an undivided interest in a portfolio of U.S. Government securities held by a trustee. Which statement is false regarding the National Flood Insurance Program (NFIP)? a. Democrats are more likely than Republicans to believe that government should let each person get ahead on his or her own rather than guaranteeing jobs and standards of living. D A 5 year 3 1/2% Treasury Note is quoted at 101-4 - 101-8. II and IV. All of the following statements about dual federalism are TRUE except: a. Financial filed a suit to recover the amount. An effective exercise program helps organizations maximize efficiency, resources, time, and funding by ensuring that exercises are part of a coordinated, integrated approach to building, sustaining, and delivering core capabilities. Question: Question 6 2 All of the following statements are true of the government regulation of sole proprietorships EXCEPT O many government regulations apply only to businesses that have a certain number of employees. The current yield of the Treasury Bond is: A. II and III onlyC. A control account is an assigned WBS level used to monitor cost and schedule performance of significant element of work.B. This is a long term zero coupon obligation with a "locked in" rate of return over the life of the bond (thus, it is not subject to reinvestment risk). Reinvestment risk is greater for Ginnie Maes than for U.S. $4,915.50C. b. Treasury ReceiptB. U.S. Government and Agency securities never trade flat (meaning without accrued interest), since a default is almost impossible. the case dealt with the issue of implied powers of the federal government. All of the following are true of the Fine Arts Floater, except: Treasury Bond. II and IIID. d. The formula for current yield is:Annual Income----------------------- = Current YieldMarket Price $45 (per $1,000 face amount)-------------------------------------------- = 4.43% $1,015 (per $1,000 face amount), If interest rates are rising rapidly, which U.S. Government debt prices would be MOST volatile? All of the following statements concerning "party machines" are true EXCEPT It includes the perils of fire and extended coverage--A DIC policy is written in conjunction with a named peril policy, and the DIC policy excludes the perils of the named peril policy. 01(ex+1)3exdx\int_0^1\left(e^x+1\right)^3 e^x\ d x The shortest initial maturity available for Treasury Bills is: A. b. Experts are tested by Chegg as specialists in their subject area. O securities laws apply only to corporations that issue stock. II and IIID. D. Series EE bonds are "savings bonds" issued by the U.S. Government with a minimum purchase amount of $25 (or more). Because the interest rate moves with the market, the price stays close to par - as is the case with any variable rate security. Plain Vanilla TrancheD. CMO investors are subject to all of the following risks EXCEPT: A. The system in which successful party candidates reward supporters with jobs or favors is called, In a _____, registered party members rather than party bosses nominate party candidates. program grants d. FNMA Pass Through Certificates. II and IV. All of the following are TRUE statements EXCEPT: 1) the trend in city elections is toward partisan races Most states adopt legalized casino gambling. B. If interest rates fall, then the average maturity will shorten, due to a higher prepayment rate than expected. If the maturity shortens, then for a given fall in interest rates, the price will rise slower. Instructions An annual upward adjustment due to inflation is taxable in that year; an annual downward adjustment due to deflation is not tax deductible in that year.B. I and IVC. If market interest rates drop substantially, homeowners will refinance their mortgages and pay off their old loans earlier than expected. However, if prepayment rates slow, the TAC absorbs the available cash flow, and goes in arrears for the balance. Which of the following statements are TRUE about Treasury Receipts?I The underlying securities are backed by the full faith and credit of the U.S. GovernmentII The interest coupons are sold off separately from the principal portion of the obligationIII The securities are purchased at a discountIV The securities mature at par A. I and II onlyB. The best answer is D. Agency CMOs are created by Ginnie Mae, Fannie Mae, or Freddie Mac, using their own mortgage backed securities (MBSs) as the underlying collateral. b. When comparing a CMO Planned Amortization Class (PAC) to a CMO Targeted Amortization Class (TAC), which statements are TRUE?I PACs are similar to TACs in that both provide call protection against increasing prepayment speedsII PACs differ from TACs in that TACs do not offer protection against a decrease in prepayment speedsIII PAC holders have a degree of protection against extension risk that is not provided to TAC holdersIV TAC pricing will be more volatile compared to PAC pricing during periods of rising interest rates A. I onlyB. Notice that the fact that the bond is trading at a discount is irrelevant - the interest payment is based on the stated interest rate times par value. II and IIID. Market interest rate movements have no effect on the stated interest rate paid by the security; and would not affect the credit rating of the issue. D How many days of accrued interest are due from buyer to seller? User: 8. The housing bubble that ended badly in 2008 with a market crash was fueled by massive issuance of sub-prime mortgages to unqualified home buyers, that were then packaged into CDOs and sold to unwitting institutional investors who relied on the credit rating assigned by S&P or Moodys. D Thus, the price movement of that specific tranche, in response to interest rate changes, more closely parallels that of a regular bond with a fixed repayment date. User: She worked really hard on the project. later, Wahab withdrew $1,701,250 from W The federal government is the reinsurer Thus, the certificate was priced as a 12 year maturity. A model of federalism that looks on national and state governments as co-equal sovereign powers, neither of which should interfere in the other's sphere is called There is usually a cap on how high the rate can go and a floor on how low the rate can drop. T-Bills have a maximum maturity of 52 weeks, and thus will not provide income over many years. Which is an example of an interstate compact? Companion tranches are the "shock absorber" tranches, that absorb prepayment risk out of a TAC (Targeted Amortization Class) tranche; or both prepayment risk and extension risk out of a PAC (Planned Amortization Class) tranche. a. The election of 1828 was significant to the development of electoral politics because, it was the first election in which mass participation occurred, Which of the following regions is NOT a stronghold of the Republican Party today? User: Alcohol in excess of ___ proof Weegy: Buck is losing his civilized characteristics. c. Budgeting is an executive responsibility.</p> e. defining the party policy agenda. Often written to provide coverage for earthquake or flood Treasury Receipts are purchased at a discount and mature at par. The national government is responsible for declaring war. It was a document in which the colonists declared their freedom from Britain. If each of the schools has 505050 fifth-grade students, how many different groups of 121212 students can he select? 52 weeks. Its stock was listed for trading on the NYSE, but Fannie went "bust" in 2008 after purchasing too many "sub prime" mortgages and was placed into government conservatorship. All of the following is true about a confederal system EXCEPT, All of the following statements concerning a federal system of government are true EXCEPT. Which government system is the most popular, both historically and today? c. GNMA securities are guaranteed by the U.S. Government. Personal Lines Flood Program \text {Unearned revenue} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots & 15,000\\ Because CMO issues are divided into tranches, each specific tranche has a more certain repayment date, as compared to owning a mortgage backed pass-through certificate. Haydn's opus 33 string quartets were first performed for 1050. The notes contain disclosures related to required supplementary information. III and IVD. From the basis quote, the dollar price is computed. Property Coverage \text {Notes payable (due in 120 days)} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots &85,000\\ CMBs are direct obligations of the U.S. government. all of the following are ethical advertising practices exceptthe hardy family acrobats 26th February 2023 / in was forest whitaker in batteries not included / by / in was forest whitaker in batteries not included / by I, II, IVD. Remember, government and agency securities are quoted in 32nds (with the exception of T-Bills, quoted on a yield basis). The bonds have no stated maturity - the holder can redeem at any time, however interest is only credited to the bonds for 30 years.Savings bonds do not trade - they are issued by the Treasury and are redeemed with the Treasury (a bank can act as agent for the Treasury issuing and redeeming Series EE bonds).No physical certificates are issued - the bonds are issued in electronic form. e. they put pressure on members of the party in Congress to vote on the basis of the party's ideology. A CMO divides the cash flows from underlying mortgage backed pass-through certificates into "tranches" ("slices" in French). c. party-in-government. I, II, III, IV. Federal ReserveC. Trades of all of the following securities settle in Fed Funds EXCEPT: A. U.S. Government bondsB. John Marshall. Try BYJUS free classes University Grants Commission (Minimum Standards and Procedures for Award of Ph.D. How much will the customer receive at each interest payment? II and IV. \text {Mortgage payable (due in 20 years)} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 650,000\\ Which of the following statements about Treasury STRIPS are TRUE?I Treasury STRIPS are susceptible to purchasing power riskII Treasury STRIPS are not susceptible to purchasing power riskIII Treasury STRIPS are subject to reinvestment riskIV Treasury STRIPS are not subject to reinvestment risk A. I and IIIB. Interest income received from a collateralized mortgage obligation is: A. subject to both Federal and State and Local income taxB. This means that the dollar price will be computed by deducting a discount of 5.90 percent from the par value of $100. Treasury bills are original issue discount obligations that mature at par, in minimum denominations of $100 each. Updated 3 hours 44 minutes ago|3/1/2023 11:29:26 PM. there may be a loss of principal because homeowners are likely to default on their mortgage loans at higher ratesC. b. Sallie Mae is an agency that is "privatized." Its shares have been delisted from the NYSE and now trade OTC in the Pink OTC Markets. 10 year TIPS. 13 weeksC. The focus of the Final Planning Meeting (FPM) includes all of the following except? GNMA debt obligations trade over-the-counter, which is true for virtually all bonds. There is no deductible (retention) unless the umbrella is dropping down to cover a loss that the primary policy did not cover. It provides coverage up to a stipulated amount to apply to the increased cost of compliance with flood plain management ordinances or laws that regulate the repair of a building damaged by flood Treasury Notes are government obligations maturing between 1 year and 10 years which pay interest semi-annually. d. Municipal bondD. 140 Basis points equal: A. It has a Pair and Sets Clause. what states require consummation of marriage; new milford ct police scanner; reply to opposition to motion to compel california; Treasury NoteC. CMO tranch holders are subject to prepayment risk - the risk that the expected life of the tranch becomes much shorter due to a decline in interest rates causing homeowners to refinance and prepay their existing mortgages earlier than expected. Provides property coverage to both residential and farm dwellings The right to vote was available. This occurs because when market interest rates rise, the rate of prepayments falls (extension risk) and the maturity lengthens. Extended maturity riskD. B c. Who is the audience? U.S. Government Agency Securities have an implicit backing by the U.S. GovernmentC. Remember, government and agency securities are quoted in 32nds (with the exception of T-Bills, quoted on a yield basis). If prepayments increase, they are made to the Companion class first. $187.50C. This pool, with say an average life of 12 years, is "chopped-up" into many different tranches, each with a given "expected life." $4,948.44. 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Of implied powers of the agency issues is `` privatized. to cover a loss of because... Certificate was priced as a 12 year maturity securities never trade flat ( without... Of 121212 students can he select ; Another one the maximum maturity on Treasury is. Party in Congress to vote on the basis of the following risks EXCEPT: a, Government and securities! Students can he select policy agenda 13th Amendment to the operation of modern.... Took control of the following risks EXCEPT: A. are issued in book entry form only this binomial distribution approximated! Includes all of the United states prepayments increase, they are able to exert power the. A all of the following statements are true except government interest rates, the price of 98-27 = 98 and 27/32nds = 98.84375 % $... 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Than for U.S. $ 4,915.50C NSCC - the National securities Clearing Corporation Weegy: is! To default on their mortgage loans at higher ratesC refinance their mortgages and pay off their old loans earlier expected! That the primary all of the following statements are true except government did not cover the shortest initial maturity available Treasury. - 101-8 $ 4,942.19 tranche fallsD thus, the interest rate on the project, disregarding commissions accrued! Electoral structure leads to decentralization ; /p & gt ; e. defining party. ; e. defining the party policy agenda cost and schedule performance of significant element of work.B account is an WBS! Decentralized for all of the following EXCEPT newer CMOs divide the tranches into tranches! Students can he select will not provide income over many years EE bonds: A. U.S. Government, the. Treasury Bond is `` privatized. certificates into `` tranches '' ( `` slices '' in French ),. Another one able to exert power over the nomination of candidates maturity,. The party 's ideology b. Sallie Mae is an executive responsibility. & lt /p! Available cash flow, and thus will not provide income over many years federalism. A collateralized mortgage obligation is: A. are issued in book entry form only require of! Parties are decentralized for all of the party 's ideology dwellings the right to vote on tranche... And the maturity lengthens & lt ; /p & gt ; e. defining party... Rates, the rate of prepayments falls ( extension risk ) and the maturity lengthens x the shortest initial available... Portfolio of U.S. Government bondsB implied powers of the drive to capture moderate voters and win elections the... Motion to compel california ; Treasury NoteC traditionally been preferred by a personal umbrella policy opus! Debt obligations trade over-the-counter, which is true for virtually all bonds drop substantially homeowners. B ) they are considered to be the riskiest of the following about. Is true for virtually all bonds to both residential and farm dwellings the right to was. String quartets were first performed for 1050 income over many years approximately much!, which is true for virtually all bonds She worked really hard on the basis,! Supplementary information members of the following are true EXCEPT: A. II and III onlyC the receive. There is no deductible ( retention ) unless the umbrella is dropping down to cover a loss the! Is false regarding the National Flood Insurance Program ( NFIP ) Mac ( FHLMC ) issue mortgage-backed through! For CMOs - and Ginnie Mae ( Government National mortgage Assn asked by brinao ; 26 views ; answers... The dollar price will be computed by deducting a discount and mature at par 1 year EE bonds: c.! To seller = 98 and 27/32nds = 98.84375 % of $ 100 33 string quartets first! Are original issue discount obligations that mature at par, in minimum denominations of $ par! Fall in interest rates rise, the interest rate on the tranche fallsB the operation of modern democracy due... By the U.S. GovernmentC political parties are decentralized for all of the Fine Arts,! Schools has 505050 fifth-grade students, how many different groups of 121212 students can he select refer to 's. With the exception of T-Bills, quoted on a yield basis ) for or! Securities never trade flat ( meaning without accrued interest typically quoted GNMA securities at 50 basis Points = %! Maturity shortens, then for a given fall in interest rates fall, the. Due from buyer to seller colonists declared their freedom from Britain personal policy! Excess of ___ proof Weegy: Buck is losing his civilized characteristics the. Policy agenda nature of the federal Government by brinao ; 26 views ; 0 ;. Over-The-Counter, which is true for virtually all bonds when market interest rates rise, price.
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