Which One of the Following Correctly Applies to a Mortgage

question 49

Multiple Choice

Which one of the following correctly applies to a mortgage passthrough bond?

• A)The primary collateral for the bond is the underlying pool of mortgages.
• B)All interest received is immediately passed through while principal payments are held until the bond matures.
• C)Each bond represents one home mortgage.
• D)These bonds are created via a process known as mortgage collaring.
• E)All of these bonds are guaranteed by the full faith and credit of the U.S. government.