PAC Bondholders Receive Payments of Principal Based on Which One

question 85

Multiple Choice

PAC bondholders receive payments of principal based on which one of the following?

• A)an amortization schedule
• B)PAC collar's lower PSA prepayment schedule
• C)PAC collar's upper PSA prepayment schedule
• D)receipt of all principal collected on the underlying pool of mortgages until the bond is paid in full
• E)zero principal from the underlying pool of mortgages until after the PAC companion bonds have been paid in full

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Definitions:

Qualified Retirement Plan

A retirement savings plan recognized by the IRS that offers tax benefits to both employers and employees.

Child Tax Credit

A tax credit available to taxpayers for each qualifying dependent child, aimed at reducing the taxpayer's liability.

AGI

Adjusted Gross Income (AGI) is a measure of income calculated from your gross income and allows for certain deductions, serving as a basis for calculating taxable income.

Dependent Child

A child who relies on their parent or guardian for more than half of their financial support and meets certain IRS criteria for tax purposes.