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Author Question: Which of the following characteristics apply to collateralized mortgage obligations?I.All ... (Read 43 times)

rubiosusy7

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Question 1

What is the taxable equivalent yield of a 3.5% municipal bond if the investor is in the 37% federal and 6% state tax brackets?  The investor lives in the state that issued the bond.
◦ 5.91%
◦ 6.14%
◦ 8.14%
◦ 3.72%

Question 2

Which of the following characteristics apply to collateralized mortgage obligations?

I.All bondholders receive a pro-rata share of all interest payments.
II.CMOs are derivative securities created from mortgage-backed bonds.
III.All principal payments are paid to the shortest remaining tranche.
IV.CMOs have definite maturity dates for each tranche.

◦ I and II only
◦ I and III only
◦ I, II and III only
◦ II, III and IV only


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Marked as best answer by rubiosusy7 on Mar 29, 2022

ElaneShive

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rubiosusy7

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Reply 2 on: Mar 29, 2022
Thanks for the timely response, appreciate it


samiel-sayed

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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