The Assets That Are Securitized Can Have a Fixed Rate

question 24

Essay

The assets that are securitized can have a fixed rate or a floating rate, which in turn impacts the structure in terms of the coupon rate for the bonds issued. Illustrate this.

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Definitions:

Cash Balance

The total amount of money in cash form available in an account at any given time.

Deposits

Money placed into a bank account or with a financial institution for safekeeping.

Bank Statement

A formal accounting by a bank of the adding and subtracting activities that have occurred in one bank account over a stated period of time (usually a month).

Check Register

A personal record book or digital log used to track checks written, deposits made, and the current balance of a checking account.