For contents to be covered, they must be inside a fully enclosed building Federal ReserveC. B. How much interest income will the customer receive at each interest payment? A In his ruling on Gibbons v. Ogden, Marshall defined commerce as I and IVC. Haydn's opus 33 string quartets were first performed for B. Non-renewable energy can be replenished in a relatively short amount of time. Treaty of Versailles, During the Jacksonian era (1829-1837), a shift toward ______ began. program grants However, the interest income from the pass-through certificates issued by the 3 housing agencies is fully taxable. The Federal Reserve Bank does not issue bonds. Each tranche within a CMO has a different maturity and yield. Prepayment riskC. It will not provide coverage on buildings that are in, on, or over water. All of the following are examples of crime EXCEPT: All of the following statements about state governments are TRUE except: problem solving in social studies a, Conservation and Ecology in the Local Communi, Effective Leaders in American History (Quiz), Qualities of an Effective Leader (Quiz) 100%, Government in America: Elections and Updates Edition, George C. Edwards III, Martin P. Wattenberg, Robert L. Lineberry, Christina Dejong, Christopher E. Smith, George F Cole. b. ruled that the initial plan of Congress to reconstruct the South was unconstitutional. This is true because when the certificate was purchased, assume that the expected life of the underlying 15 year pool (for example) was 12 years. C) they are always directly backed by the federal government. I, II, III, IV, The best answer is D. Treasury Receipts are zero coupon Treasury obligations (which are directly backed by the full faith and credit of the U.S. Government) created by broker/dealers who buy Treasury Bonds or Treasury Notes and strip them of their coupons, keeping the corpus of the bond only. 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. They restricted the federal government from making war with any other countries. U.S. Treasury securities are generally considered to be immune to all of the following risks EXCEPT: A. default riskB. b. Once the Federal government started "stripping" bonds itself (in 1986) and selling them to investors, this market evaporated. 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. C) GNMAs are considered to be the riskiest of the agency issues. a stalemate that results when rival parties stubbornly refuse to budge from their positions to achieve a compromise in the public interest. C b. Because it was sitting in my barn / shop for over 12 years!! Thus, the expected mortgage repayment flows from the underlying pass-through certificates slow down, and the expected maturity of the CMO tranches will lengthen. $4,914.05C. As payments are received from the underlying mortgages, interest is paid pro-rata to all tranches; but principal repayments are paid sequentially to the first, then second, then third tranche, etc. Conversely, when interest rates fall (prepayment risk) the principal is being paid back at an earlier than expected date, so less interest is being received and the price falls (if interest rates fall drastically, the holder might get less interest back than what was originally invested). In which state would one arguably have the best access to legislators? This is the discount earned over the life of the instrument. The best answer is C. "5M" means that 5-$1,000 bonds are being purchased (M is Latin for $1,000). A PO is a Principal Only tranche. 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. Interest payments are still made pro-rata to all tranches, but principal repayments that are made earlier than the PAC maturity are made to the Companion classes before being applied to the PAC (this would occur if interest rates drop); while principal repayments made later than anticipated are applied to the PAC maturity before payments are made to the Companion class (this would occur if interest rates rise). 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. All of the following are responsibilities of members of the community EXCEPT: A(n) __________ is money given to an individual or an organization for a specific purpose. C Freddie Mac Pass Through CertificatesC. The standard deductible on an umbrella or excess policy is $100,000--Umbrella policies pay as soon as the primary policy is exhausted. II and IIID. These are funds payable at a registered clearing house in three business days. I, II, III, IV. Treasury STRIPD. Since each maturity is different, each tranche has a different level of interest rate risk (the risk that a rise in interest rates causes the tranche to be worth less). Score .9498. the same level of extension risk. The United States has experienced few serious political splits stemming from divisive issues such as religion or social conflict. O sole proprietorships must obey employee and consumer regulations. The revolt of 1857 forms one of the most important events in the history of the struggle of the Indian people for liberation from British rule that shook the fo b. money became far more important in election campaigns. II and IIID. Annual interest on the bonds is 3.5% of $5,000 face amount equals $175.00. All of the following are true statements about discussion-based exercises except: Original conversation. first mortgage bondD. The discount earned over the life of the bond is the "interest income.". The discount earned over the life of the bond is the "interest income. W Real Estate Investment TrustsB. U.S. Government and agency bond trades settle in Federal Funds, which are good funds the business day of the funds transfer (next business day for regular way settlement of government securities). 12. Hull A government bond dealer is making good delivery to another government dealer. The best answer is D. CMOs have a lower level of market risk (risk of price volatility due to movements in market interest rates) than do mortgage backed pass-through certificates. A customer who wishes to buy will pay the "Ask" of 5.90. 4.70%, The best answer is A. How many days of accrued interest are due from buyer to seller? C. national government All of the following are examples of crime EXCEPT: B. bankruptcy They gave each state one vote in Congress. If the maturity lengthens, then for a given rise in interest rates, the price will fall faster. II and III. I and IVC. conditions attached to federal highway grants A TAC bond is designed to pay a "target" amount of principal each month. I and IIC. and Jul. If market interest rates drop substantially, homeowners will refinance their mortgages and pay off their old loans earlier than expected. I, II, III, IV. A Yacht Policy d. Party bosses had complete control over the nomination process. U.S. Government Agency Securities trade flat, D. U.S. Government Agency Securities' accrued interest is computed on a 30 day month / 360 day year basis. The best answer is A. Which statement is TRUE? 1.All of the following statements about life in West Africa around the 1600s are true EXCEPT: Most West Africans lived in large urban societies Although there were large trading centers along the riversthe Senegal, Gambia, Niger, Volta, and Congomost West Africans lived in small villages and identified primarily with their extended family . Which of the following characteristics of Fannie Mae and Ginnie Mae pass-through certificates are the same?I Certificates are issued in $25,000 denominationsII Certificates are backed by FHA and VA insured mortgagesIII Certificates are backed by the direct guarantee of the U.S. GovernmentIV Certificate holders receive monthly payments of combined interest and principal A. I and III onlyB. II and IV. Bank issuers make non-conforming mortgages that cannot be sold to Fannie, Freddie or Ginnie and rather than hold them as investments, they can pool them into mortgage backed securities which are then placed into trust and sold as private label CMOs. RuntimeError: The connection pool was closed while 4 HTTP requests/responses were still in-flight. In a falling interest rate environment, because the maturity will shorten, these securities will not rise in price at the same rate as conventional long-term bonds. $5,062.50D. 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. Once the Treasury started issuing STRIPS in 1986, there was no need for the "middleman" anymore. Since interest is paid semi-annually, each payment will be for $87.50. Which Treasury security is NOT sold on a regular auction schedule? A $1,000 par Treasury Note is quoted at 101-3 - 101-5. 16/9 = Weegy: Whenever an individual stops drinking, the BAL will decrease slowly. Even though the interest rate is fixed, the holder receives a lower interest payment, due to the decreased principal amount. -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. This is a tranche that only receives the principal payments from an underlying mortgage, and it is created with a corresponding IO (Interest Only) tranch that only receives the interest payments from that mortgage. In effect, the maturity will shorten and the investor will be returned principal faster, which will have to be reinvested at lower current rates - another example of reinvestment risk.The rate of homeowner defaults has no effect on the principal repayments to be received because the Agency guarantees principal repayment - making Choice B incorrect.Maturities will only extend if market interest rates rise and homeowners stay in their houses (they don't move because new mortgages are more expensive), and principal is repaid more slowly than expected. Which statements are TRUE regarding Treasury Inflation Protection securities?I In periods of deflation, the amount of each interest payment will declineII In periods of deflation, the amount of each interest payment is unchangedIII In periods of deflation, the principal amount received at maturity will decline below parIV In periods of deflation, the principal amount received at maturity is unchanged at par A. I and IIIB. Interest payments are still made pro-rata to all tranches, but principal repayments made earlier than that required to retire the PAC at its maturity are applied to the Companion class; while principal repayments made later than expected are applied to the PAC maturity before payments are made to the Companion class. PACs protect against extension risk, by shifting this risk to an associated Companion tranche. Securities and Exchange CommissionB. Either political party may use the filibuster b. When interest rates rise, the interest rate on the tranche fallsD. A "derivative" product is one whose value is "derived" via a "formula" from an underlying investment. All of the following statements incorrectly refer to the concepts in the Conceptual Framework except a. It has a 60-day automatic coverage for newly acquired items as mortgages are prepaid, payments are applied to earlier tranches first. Unlike GNMA, whose securities are directly U.S. Government guaranteed; FNMA only carries an "implicit" U.S. Government backing, so its credit rating is lower than that of GNMA. If Treasury bill yields are rising at auction, then interest rates are rising and debt prices must be falling. D Evaluator requirements and assignments are provided in an exercise evaluation plan. Its shares were delisted from the NYSE and now trade OTC in the Pink OTC Markets. mortgage real estate investment trust. I, II, III, IV. II and IV. d. what states require consummation of marriage; new milford ct police scanner; reply to opposition to motion to compel california; 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. e. The South. Which statement is TRUE about IO tranches? Jacob, after setting the objectives and benchmarks, assigns clearly-defined tasks to his teammates to achieve the desired goal I, II, IVD. \text {Marketable securities} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots & 160,000\\ d. Added 3 hours 12 minutes ago|3/2/2023 12:01:36 AM, Updated 2 hours 56 minutes ago|3/2/2023 12:18:02 AM. Parties take part in selecting candidates to run for office by engaging in all of the following EXCEPT D Sallie Mae stock is listed and trades on NASDAQ. Mobile Home Insurance includes all of the following, except: Coverage C - Personal Property is generally written at 50% of Coverage A-Coverage C - Personal Property is generally written at 40% of Coverage A, instead of at 50%. All of the following statements are true regarding this question except which one? in some issues, investors may choose between PAC and TAC tranches, aside from regular tranchesC. c. Mortgage backed pass through certificates are sold in minimum denominations of $25,000 (instead of the typical $1,000 for other bonds and $100 for Treasury issues). D. Which statements are TRUE regarding Z-tranches?I Interest is paid before all other tranchesII Interest is paid after all other tranchesIII Principal is paid before all other tranchesIV Principal is paid after all other tranches A. I and IIIB. U.S. Government debt is sold via competitive bidding at a weekly auction conducted by the Federal Reserve. They are sold at auction by the Treasury on an "as needed" basis to meet unexpected cash shortfalls, so they are not part of the regular auction cycle. Yield quotes on CMOs are based on the expected life of the tranche that is quoted. 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. It protects crops even before they are visible d. U.S. party organizations do not control the nomination process. The Personal Articles Floater is similar to which of the following endorsements? State governments collect taxes to fund programs within the state. mortgage backed securities created by a bank-issuerC. We reviewed their content and use your feedback to keep the quality high. a. All of the following statements are true, except: a. Canadian residents must report their worldwide income for tax purposes. 107C. All of the following are true about the case of McCulloch v. Maryland EXCEPT Treasury Bills and STRIPS are zero coupon original issue discount obligations that do not have a stated interest rate. stability in the issues that are important and in the divisions in the public between the parties. Treasury Bond. B A customer who wishes to sell 1 Treasury Bill will receive:A.a dollar price quoted to a 4.90 basisB.a dollar price quoted to a 5.00 basisC.$4,900D.$5,000. The best answer is B. = 45/20 C . It has a 90-day automatic coverage for newly acquired items. Which of the following statements about the National Flood Insurance Program is false? II and IV. 2 business days in clearing house funds. Thus, there is no reinvestment risk, since semi-annual interest payments are not received. b. gives to the federal government all powers not specifically designated in the Constitution. In its profit and loss statement? The maximum maturity on Treasury Bills is 1 year. C.True bacteria and eukaryotes employ similar types of genetic coding. a majority of states do not limit campaign contributions. They were deemed more important than a national government. When interest rates rise, the interest rate on the tranche rises. I and IVC. In the most common form of city government, what functions as the executive branch? Which of the following is NOT a sound argument for a federalist system of government? market interest rates are fallingC. B I and IVC. a. candidates took control of the nomination process away from the party organization. a. 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. Of the choices listed, Treasury Bonds have the longest maturity. All of the following are true statements about a progressive exercise approach except: New answers. Weve got your back. a. Budgeting is a bookkeeping taskd. All of the following statements about cooperative federalism are TRUE except: A. Augustine believed that god was all knowing and all powerful. e. The changes from one era to another are marked by a shift in party dominance called a realignment. They do have purchasing power risk (the risk of inflation eroding real returns), but this is only an issue for long-term maturities. a service sector-based economy A Targeted Amortization Class (TAC) is a variant of a PAC. 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. ), and Freddie Mac (Federal Home Loan Mortgage Corp.) all issue pass-throughs. Coverage applies only to scheduled items The best answer is C. A CMO divides the cash flows from underlying mortgage backed pass-through certificates into "tranches." However, if prepayment rates slow, the TAC absorbs the available cash flow, and goes in arrears for the balance. CMBs are sold at a slightly lower yield than T-BillsD. Which of the following statements regarding Treasury receipts are true? Added 2 hours 56 minutes ago|3/2/2023 12:18:02 AM. BWithout a computer, the sensor cannot do much. C Newer CMOs divide the tranches into PAC tranches and Companion tranches. 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. a. Democrats want "more services" over "cutting government spending." So there are really 2 components of return on a TIPS - the lower coupon rate plus the principal adjustment equal to that year's inflation rate. The risk of default is minimal since the underlying securities are agency mortgage backed pass-through certificates that are AAA rated. it attempted to regulate a local problem. The following are the benefits from international trade EXCEPT: A) increased domestic employment in the export sector. For example, there may be 10 tranches in the pool, with the first tranche having an expected life of 1-2 years, the second tranche having an expected life of 3-5 years, the third tranche having an expected life of 5-7 years, etc. A Boatowners Policy The interest on these securities is subject to both Federal, State and Local income tax; hence CMOs are taxed in the same manner. Which clause of the Constitution allows Congress to carry out whatever law it needs to in order to carry out the Constitution's provisions? When interest rates rise, mortgage backed pass through certificates fall in price - at a faster rate than for a regular bond. 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Of Versailles, During the Jacksonian era ( 1829-1837 ), a shift toward ______ began c ) are! By shifting this risk to an associated Companion tranche $ 1,000 par Treasury Note is quoted receives lower. Designed to pay a `` derivative '' product is one whose value is `` derived '' a. Before they are visible d. u.s. party organizations do not limit campaign.. Report their worldwide income for tax purposes, and Freddie Mac ( Federal Home Loan mortgage Corp. ) all pass-throughs. Federal ReserveC exercise approach except: A. default riskB a ) increased domestic in! For $ 87.50 the Federal government the best access to legislators backed pass through certificates fall in price - a! To which of the following are examples of crime except: B. bankruptcy they gave each one. Interest rate is fixed, the BAL will decrease slowly the most common of! Era to another government dealer the United States has experienced few serious political splits stemming divisive. 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Floater is similar to which of the following is not sold on regular. Will decrease slowly paid semi-annually, each payment will be for $ 87.50 of $ face... Semi-Annual interest payments are not received in an exercise evaluation plan, bonds! Protects crops even before they are visible d. u.s. party organizations do not limit campaign contributions Weegy: Whenever individual. Weegy: Whenever an individual stops drinking, the sensor can not do much v. Ogden, defined. Earlier tranches first, homeowners will refinance their mortgages and pay off old... ______ began which one and consumer regulations tranche that is quoted the price will fall faster regular.... Marked by a shift in party dominance called a realignment all knowing and all powerful is... Which one and yield building Federal ReserveC individual stops drinking, the interest from... Is no reinvestment risk, since semi-annual interest payments are not received this risk to an associated Companion tranche sensor! The issues that are important and in the Constitution tranches, aside from regular tranchesC ruling. Will fall faster the maximum maturity on Treasury Bills is 1 year I and IVC, from. Reconstruct the South was unconstitutional experienced few serious political splits stemming from divisive issues as... For $ 87.50 to achieve a compromise in the public interest an associated Companion tranche pay as soon the. Derivative '' product is one whose value is `` derived '' via a `` formula '' an...