Why would an interest rate derivative be using in a securitization structure?
What will be an ideal response?
To deal with situations where there may be a mismatch between the cash flow characteristics of the asset and the liabilities, interest rate derivative instruments are used in a securitization. The two common interest rate derivatives used are interest rate swaps and interest rate caps.
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Explain how consumers can learn about products without deliberately setting out to do so
What will be an ideal response?
As the degrees of freedom approach infinity, the values of a Student t distribution approach those of a standard normal distribution
Indicate whether the statement is true or false
Ivory Inc. has forecast purchases on account to be $310,000 in March, $370,000 in April, $420,000 in May, and $490,000 in June. Seventy percent of purchases are paid for in the month of purchase, the remaining 30% are paid in the following month. What are budgeted cash payments for June?
A. $441,000 B. $294,000 C. $469,000 D. $343,000
What is a common stock?
What will be an ideal response?