Why would a pass-through with a WAM of 350 months be an unattractive investment for a savings and loan association?
What will be an ideal response?
Prepayment risk makes pass-through securities unattractive for certain financial institutions to hold from an asset-liability perspective. Thrifts and commercial banks want to lock in a spread over their cost of funds. Their funds are raised on a short-term basis. If they invest in fixed-rate pass-through securities with a WAM of 350 months (over 29 years), they will be mismatched because a pass-through is a longer term security. In particular, a savings and loan association and other depository institutions are exposed to extension risk when they invest in pass-through securities. When interest rates rise investors will not refinance their homes.
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A commercial software system that is completely finished, tested, and ready for implementation is called a
a. backbone system b. vendor-supported system c. benchmark system d. turnkey system
A company's inventory records indicate the following data for the month of July:July 1Beginning380 units at $15 eachJuly 5Purchased270 units at $17 eachJuly 10Sold400 units at $50 eachJuly 20Purchased300 units at $22 eachJuly 25Sold400 units at $50 eachIf the company uses the weighted average inventory valuation method and the perpetual inventory system, what would be the cost of its ending inventory? (Round average cost per unit to 2 decimals, and final answer to the nearest dollar.)
What will be an ideal response?
Including the surname of a limited partner in the partnership name is prohibited unless her surname is the same as that of a general partner or if the business had been carried on under that name prior to the admission of the limited partner
Indicate whether the statement is true or false
A behavioral approach that evaluates the impact on a firm's return through simultaneous changes in a number variables of a project is called ________
A) sensitivity analysis B) scenario analysis C) simulation analysis D) Monte Carlo simulation