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Tom [10]
2 years ago
7

A collateralized mortgage obligation (CMO) makes an interest-only payment to an investor. This payment will be

Business
1 answer:
s344n2d4d5 [400]2 years ago
3 0

A collateralized mortgage obligation (CMO) makes an interest-only payment to an investor. This payment will be <u>investors</u>

<h3>What is collateralized mortgage obligation?</h3>

In order to satisfy the needs of investors, a collateralized mortgage obligation (CMO) repackages and directs the payments of principle and interest from a collateral pool to various types and maturities of securities.

The first CMOs were developed in 1983 for Freddie Mac, a supplier of mortgage liquidity in the United States, by the investment banks Salomon Brothers and First Boston. Although Dexter Senft eventually got an industry award for his services, Lewis Ranieri led the Salomon Brothers team and Laurence D. Fink led the First Boston team.

A CMO is not due by the institution that established and ran the business; rather, it is a debt instrument issued by an abstraction, or special purpose entity.

To learn more about collateralized mortgage obligation from the given link:

brainly.com/question/17277747

#SPJ4

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An depreciation of the U.S. dollar yields the average American resident to be relatively less wealthy compared to people living
kupik [55]

Answer:

Those who sell their goods and services abroad benefit from devaluation.

Explanation:

The firms and people who sell their goods and service abroad benefit from a US Dollar devaluation. Since their products are sold abroad, a devaluation increases the competitiveness of their offer compared with other countries, making more attractive their offer because they sell the same quality and value at a lower price

4 0
3 years ago
According to Hume, how can you prove that the future will resemble the past?
Lerok [7]
Answer
We cannot know that the future will resemble the past by means of demonstrative reasoning,since there is no contradiction in suggesting that the future will not resemble the past.
:) Hope this helps
3 0
3 years ago
Serena, a bank manager at the United Front Bank, heads the business loan department. She wants to communicate to all of the bank
Dmitrij [34]

Answer:

(a) She should use specific and simple language.

Explanation:

The communication is the two-way process through which the sender and the receiver can communicate/ talk with each other. It is an exchange of ideas and information. It can be done in verbal or non verbally form.  

There are various modes of communication like - telephonic, emails, messaging, face to face, etc.  

In the given situation, the Serena should use the specific and the simple language while communicating this bad news so that everyone can listen properly, and the chances of argument and the aggressiveness of the people would be less occur.  

3 0
3 years ago
Booher Book Stores has a beta of 1.0. The yield on a 3-month T-bill is 3% and the yield on a 10-year T-bond is 6%. The market ri
mart [117]

Answer:

Cost of equity =  10.5%

Explanation:

<em>The capital asset pricing model is a risk-based model. Here, the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk. The magnitude by which a stock is affected by systematic risk is measured by beta. </em>

Under CAPM, Ke= Rf + β(Rm-Rf)  

Rf-risk-free rate (long-term i.e 10 year treasury bill rate), β= Beta, Rm= Return on market., Ke- Return on equity (cost of equity)

This model can be used to work out the cost of equity as follows:

Ke= Rf + β (Rm-Rf)

Rf- 6%, β= 1.0, Rm- 10.5, E(r)- ?

Ke = 6% + 1.0× (10.5 -6)% = 10.5%

Ke  = 10.5%

Cost of equity =  10.5%

3 0
3 years ago
Harper’s Dog Pens, Inc. with the help of its investment bank, recently issued $196.6 million of new debt. The offer price on the
Dmitrij [34]

Answer:

$184,804,000

Explanation:

The computation of the amount for capital funding raised through the bond issue is shown below:

= Debt issued × (1 - Underwriter’s spread)

where,

Debt issued is $196,600,000

And, the underwriter spread is 6%

Now putting these values to the above formula

So, the amount of capital funding raised is

= $196,600,000 × (1 - 6%)

= $196,600,000 × 0.94

= $184,804,000

3 0
3 years ago
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