Question: 76Statement 1: The Yields on the MBS PTCs are normally higher than the yields on the corporate bonds of similarratings. Statement 2: The reason for difference in yields on the corporate bonds and similarly rated PTCs is onaccount of the optionality in the PTC, the unfamiliarity of the structure and uncertainties in respect of legal andstructural issues. Which of the above statements is correct?
Question: 77Which of the following is NOT a conceptual definition of credit risk on which credit models are based?
