Securities with Embedded Options

question 59

Multiple Choice

Securities with embedded options:

• A)often have higher yields than comparable Treasury securities.
• B)generally have no prepayment risk.
• C)are always free of default risk.
• D)all of the above.
• E)a.and b.only

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Definitions:

Short Stature

A condition characterized by a height that is significantly below the average for a person's age and sex.

Hypothalamus

A neural structure lying below (hypo) the thalamus; it directs several maintenance activities (eating, drinking, body temperature), helps govern the endocrine system via the pituitary gland, and is linked to emotion and reward.

Endocrine Glands

Glands in the body that release hormones directly into the bloodstream, regulating various bodily functions.

Motor Neurons

Nerve cells forming part of the nervous system that initiate and regulate the contraction of muscles.