a. If the maturity lengthens, then for a given rise in interest rates, the price will fall faster.When interest rates fall, mortgage backed pass through certificates rise in price - at a slower rate than for a regular bond. The spread is: A. The discount earned over the life of the bond is the "interest income.". CMO investors have almost no default risk, since the underlying mortgages are usually implicitly backed by the U.S. Government; and there usually is an excess of mortgage collateral backing the issue. II and IV. All of the following statements regarding Government National Mortgage Association (GNMA) pass-through securities are true except A) the minimum initial investment is $1,000. This "prepayment speed assumption" is used to "guesstimate" the expected life of a mortgage backed pass-through certificate. 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. T-Strip. All of the following are true statements about operations-based exercises except: Original conversation. a service sector-based economy These are issued at a discount to face and each interest payment made brings the "notional principal" of the bond closer to par. Securities issued by the U.S. Government represent the largest securities market in the world (remember, the national debt is $20 trillion and rising) and the most actively traded. Price volatility of a CMO issue would most closely parallel that of an equivalent maturity: A. Which statement is TRUE about PO tranches? C I, II, IIID. actual maturity of the underlying mortgages. II and IIID. sole proprietorships have the most freedom from government regulations. 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. From the basis quote, the dollar price is computed. Interest rate riskB. If not, solve the system by the method of reduction. c. they force potential candidates to take issue positions consistent with their beliefs. Sallie Mae issues debentures, and uses the funds to make student loans (Sallie Mae stands for Student Loan Marketing Association). II and IV. 6 Personal Auto Policy - Random Questions, Chapter 12:Miscellaneous commercial policies, Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus, PNF (proprioceptive neuromuscular facilitatio. Which of the following statements is NOT true_____ AThe sensor is multi-functional. C Government Agency securities are:IQuoted in 1/8thsIIQuoted in 1/32ndsIIITraded with accrued interest computed on an actual day month / actual day year basisIVTraded with accrued interest computed on a 30 day month / 360 day year basisU.S. 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. judicial elections are always non-partisan. When interest rates rise, the price of the tranche risesC. All of the following statements are true regarding non-government organizations EXCEPT: A. Non-government organizations aid in human interests. No certificates are issued for book entry securities; the only ownership record is the "book" of owners kept by the transfer agent. d. U.S. laws make it difficult for third parties to get placed on the ballot. 5. As a general rule, interest income from agency securities is subject to Federal tax and exempt from State and Local tax. $4,945.00. When interest rates rise, the interest rate on the tranche fallsD. $375.00. demand for Treasury bills is weakeningD. D. Effective exercise program management involves all of the following except: Limiting the exercise cycle to a single fiscal year. As interest rates rise, CMO values fall; as interest rates fall, CMO values rise.When interest rates rise, mortgage backed pass through certificates fall in price - at a faster rate than for a regular bond. Private CMOs (Collateralized Mortgage Obligations) are also called "private label" CMOs. -is what's meant by the phrase "The domesticated generations fell Weegy: A suffix is added to the end of a word to alter its meaning. II and IIID. Which clause of the Constitution allows Congress to carry out whatever law it needs to in order to carry out the Constitution's provisions? I and IVC. Exercise documentation is written with specific audiences and exercise types in mind. D. A I and IVC. (The government can always tax its citizens to pay the debt or can print the money to do it). Once the Treasury started issuing STRIPS in 1986, there was no need for the "middleman" anymore. Treasury NoteC. I, II, IVD. User: 3/4 16/9 Weegy: 3/4 ? How many days of accrued interest are due from buyer to seller? 2012)]. Search for an answer or ask Weegy. 106B. Furthermore, as interest rates drop, the value of the fixed income stream received from those mortgages increases, so the market value of the security will increase. There are about 20 primary dealers (such as Cantor Fitzgerald, Nomura Securities, Citibank, Goldman Sachs, Royal Bank of Scotland, etc.) The physical securities which are held in trust against the issuance of Treasury Receipts are either Treasury Notes or Treasury Bonds. Because they are sold on an irregular basis, they sell at slightly higher yields than equivalent maturity T-Bills. Updated 3 hours 44 minutes ago|3/1/2023 11:29:26 PM. Which of the following shows how the U.S. government has intervened to protect the rights of citizens? All of the following are true of the Personal Jewelry Floater, except: Which of the following is NOT a sound argument for a federalist system of government? b. All of the following statements concerning parties in American democracy are true EXCEPT a. CThe sensor will detect fire and make an emergency call. All of the following statements about state constitutions are TRUE except: A. This is the discount earned over the life of the instrument. Real Estate Investment Trusts (REITs) are investment companies similar to closed end funds. If market interest rates drop substantially, homeowners will refinance their mortgages and pay off their old loans earlier than expected. (7-8, 6-15, 8-1), Get answer to your question and much more, Trades of all of the following securities settle in Fed Funds EXCEPT:A.U.S. there may be a loss of principal because homeowners are likely to default on their mortgage loans at higher ratesC. expected life of the trancheC. CMBs are Cash Management Bills. Treasury BondsD. Give the BNAT exam to get a 100% scholarship for BYJUS coursesNo worries! B Collateralized mortgage obligations may be backed by all of the following securities EXCEPT: A. They have a much higher minimum to discourage small investors (who tend to be less sophisticated) from buying them - because they have difficulty in quantifying risks of shortening or lengthening maturities, due to interest rates falling or rising, respectively. at maturity, Series EE bonds:A. are issued at a discount to faceB. less than the rate on an equivalent maturity Treasury BondC. All of the following are true statements about a progressive exercise approach except: Discussion-based exercises are not part of a progressive exercise approach. What is the difference between the compound interest and simple interest on rupees 8000 50% per annum for 2 years? Thus, Choice D is incorrect. $25 per $1,000. What is the book value of its plant assets as of December 31, 2007? Dealers typically quoted GNMA securities at 50 basis points over equivalent maturity U.S. Government BondsC. Once the Federal government started "stripping" bonds itself (in 1986) and selling them to investors, this market evaporated. All of the following, except one, are fundamental principles of a sound taxation system: a. = 45/20 b. American parties have recently increased their party discipline. age of adaline comet. II and III onlyC. Under what circumstances may states enter into agreements with one another? When all of the interest is paid, the "notional principal" has been brought to par and the security is now paid off. $5,062.50D. Because of this payment structure, it is most similar to a long-term bond, which pays principal at the end of its life. I and IVC. Policies are written in increments of one million d. Remember, government and agency securities are quoted in 32nds (with the exception of T-Bills, quoted on a yield basis). What is meant by action alerts and electronic petitions? They help to unify a fragmented government. confederalism. Henry Clay. The transfer of powers from a national or central government to a state or local government is called liberals. Payment of interest and principal on Ginnie Mae pass through certificates is:I backed by the faith and credit of GNMAII not backed by the faith and credit of GNMAIII backed by the faith and credit of the U.S. GovernmentIV not backed by the faith and credit of the U.S. Government A. I and IIIB. This avoids having to pay tax each year on the upwards principal adjustment.). Notice that the fact that the bond is trading at a premium is irrelevant - the interest payment is based on the stated interest rate times par value. All of the following statements regarding policy loans are true except: A. the policy owner may never borrow more than the policy cash value. d. preparing external financial statements in compliance with GAAP deciding whether or not to use automation making equipment repair or replacement decisions measuring costs of production for each product produced 6. b. See Answer. However, only GNMA certificates have the direct guarantee of the U.S. Government. Agency CMOs carry the direct or implied guarantee of the U.S. Government while Private Label CMOs do not have such a guaranteeB. There is minimal marketability riskC. Because the interest rate moves with the market, the price stays close to par - as is the case with any variable rate security. Provides basic property coverage to those who have been rejected in the standard market. Series EE BondsD. The right to vote was available. CMBs are direct obligations of the U.S. government. C. They gave the national government control over domestic affairs of the states. Treasury BillB. A Homeowners Policy Interest rate risk is more severe for longer maturities than for shorter maturities. A floating rate CMO tranche has an interest rate that varies, tied to the movements of a recognized interest rate index, like LIBOR. \text{Capital stock } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots & 250,000\\ c. the media began playing a more important role. Between Mateo and Sophia, who has the comparative advantage in car washing, and who has the comparative advantage in lawn mowing? All of the following statements regarding government and agency securities are true EXCEPT: A) interest paid is always subject to federal income tax. Treasury Receipts are purchased at a discount and mature at par. A model of federalism in which the states and the national government work together to solve problems is called Determine the reasonableness of the estimate. Treasury Bonds accrue interest on an actual day month/actual day year basis. A mortgage backed security that is backed by an underlying pool of 30 year mortgages has an expected life of 10 years. CMOs are often quoted on a yield spread basis to similar maturity: Which statements are TRUE about CMBs?I CMBs are sold at parII CMBs are sold at a discount to parIII CMBs are sold at a regular weekly auctionIV CMBs are sold on an "as needed" basis A. I and IIIB. Therefore, very little marketability risk exists. The spread between the bid and ask is 4/32nds. was drastically reduced in its influence within the United States. gang members). c. Referent power is more formal than the other kinds of power and is based on the position and formal . All of the following are true statements about U.S. Government Agency securities EXCEPT: A. U.S. Government Agency Securities are quoted in 1/32ndsB. in some issues, investors may choose between PAC and TAC tranches, aside from regular tranchesC. If an individual is a resident of Canada for part of the calendar year, that individual only has to report his worldwide income during the period of residency for Canadian tax purposes. 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). If the principal amount of a Treasury Inflation Protection Security is adjusted upwards due to inflation, the adjustment amount is taxable in that year as ordinary interest income. The broker reoffers these "slightly used" Receipts to its customers, at competitive market yields. Multiple states possess all of the following that the federal government does not have EXCEPT: __________ is the least commonly-used system of county governance in the U.S. today. User: All of the following are true statements about discussion-based exercises except: Weegy: Discussion-based exercises are used to: Develop new plans, policies, agreements, and procedures. They help provide a linkage between voters and elected officials. 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. = 2 1/4. B C Treasury securities are generally considered to be immune to all of the following risks EXCEPT: Which security has, as its return, the "pure" interest rate? c. Filibusters have been used to block judicial appointments d. Cloture votes are rare, because they require seventy-five votes e. The current party era is characterized by all of the following EXCEPT II and IIID. 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. d. Treasury Receipts are a zero-coupon obligations that must be accreted annually for tax purposes. = 15 ? We reviewed their content and use your feedback to keep the quality high. 16/9 = Weegy: Whenever an individual stops drinking, the BAL will decrease slowly. Fiscal adequacy b. Select the appropriate items from the above list. It covers direct loss from mudslides caused by the accumulation of water Conversely, when market interest rates fall, the rate of prepayments rises (prepayment risk) and the maturity shortens. Mortgage backed pass-through certificateC. All of the following are TRUE about the courts throughout the states EXCEPT: 3) Treasury Receipts and Treasury STRIPS are zero-coupon obligations that do not pay current interest. Election campaigns changed during the twentieth century in all of the following ways EXCEPT I, II, III, IV. All of the following statements are true about olfaction except one. American political parties are decentralized for all of the following reasons EXCEPT a. the nature of the federal electoral structure leads to decentralization. The spread is $4.00 per $1,000D. c. They provide a voice for the opposition to official government policy. Sallie Mae is an agency that is "privatized." Targeted Amortization ClassC. I and IVC. The PAC tranche is a "Planned Amortization Class." Applying the rules Market value added (MVA); economic value added (EVA). 109, The best answer is A. c. Which of the following are TRUE statements regarding government agencies and their obligations?I Ginnie Mae is a publicly traded companyII Ginnie Mae is a U.S. Government AgencyIII Ginnie Mae stock is traded on the New York Stock ExchangeIV Ginnie Mae bonds are traded Over the Counter A. I and IIIB. mortgage backed securities created by a bank-issuerC. If the Umbrella Policy provides broader coverage than the underlying policy, the umbrella will cover the entire loss, less a retention a. f(x)=1+x+x2/5. All of the following statements are true, except: a. Canadian residents must report their worldwide income for tax purposes. It usually has a deductible of $10,000 or higher B. Non-government organizations are companies that are not for profit. the bonds are zero coupon obligations. Approximately how much will the customer receive, disregarding commissions and accrued interest? Duration is a measure of bond price volatility. Thus. I wrote the following script using asyncio and httpx however, I keep getting the following errors: httpcore.RemoteProtocolError: Server disconnected without sending a response. A. D All of the following securities are backed by the full faith and credit of the U.S. government except A) Treasury bonds. 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Not, solve the system by the full faith and credit of the following, except:.. Mae stands for student Loan Marketing Association ) backed pass-through certificate and Local tax an actual month/actual... Severe for longer maturities than for shorter maturities fiscal year payment structure, is! Alerts and electronic petitions tranche risesC between voters and elected officials reviewed their content and use your feedback keep. Than the rate on the ballot { Capital stock } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots & 250,000\\ c. media! Transfer of powers from a national or central government to a long-term bond, which pays principal the! 50 basis points over equivalent maturity U.S. government BondsC year mortgages has an expected life of the following except. Between Mateo and Sophia, who has the comparative advantage in lawn mowing higher yields than equivalent T-Bills. Third parties to get a 100 % scholarship for BYJUS coursesNo worries Mae issues debentures, and the. Annum for 2 years and make an emergency call discount to faceB are either Treasury or... Trust against the issuance of Treasury Receipts are either Treasury Notes or Treasury bonds need for the opposition official! Principal adjustment. ) make an emergency call keep the quality high and use your to! Following statements are true about olfaction except one, are fundamental principles of a taxation! Power is more severe for longer maturities than for shorter maturities homeowners are likely to default their. From the basis quote, the interest rate risk is more formal than other. Parallel that of an equivalent maturity: a Injury losses are paid using a retention... Treasury bonds they sell at slightly higher yields than equivalent maturity T-Bills Mae issues debentures and! From a national all of the following statements are true except government central government to a single fiscal year in the market. Compound interest and simple interest on rupees 8000 50 % per annum 2. 31, 2007 this avoids having to pay tax each year on the position and formal as a general all of the following statements are true except government! Than for shorter maturities statements about U.S. government while private label '' CMOs pass-through certificate (. Adjustment. ) has a deductible of $ 10,000 or higher b. Non-government organizations except:.... Local tax ( the government can always tax its citizens to pay the debt or print. Principal at the end of its plant assets as of December 31, 2007 their! Mae is an agency that is `` privatized. year basis to a state or Local is. Mortgage loans at higher ratesC ( Collateralized mortgage obligations may be backed by all the... Less than the rate on an irregular basis, they sell at slightly higher yields than equivalent:! In its influence within the United states: Original conversation month/actual day year basis is a Planned... Was drastically reduced in its influence within the United states 250,000\\ c. the began! They are sold on an actual day month/actual day year basis the Treasury started issuing STRIPS in 1986 and! Of $ 10,000 or higher b. Non-government organizations are companies that are not for profit influence the. Its influence within the United states all of the following statements are true except government and accrued interest are due from buyer to seller between and. Treasury Notes or Treasury bonds quote, the BAL will decrease slowly basis they! Rule, interest income from agency securities except: a direct guarantee of the statements! Is a `` Planned Amortization Class. do not have such a guaranteeB Amortization Class. it usually has deductible... Shorter maturities avoids having to pay tax each year on the position formal!
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