B collecting interest on long term mortgages C offsetting long and short hedge

B collecting interest on long term mortgages c

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B. collecting interest on long-term mortgages.C. offsetting long and short hedge positions in Treasury futures.D.charging origination and servicing fees.E. hedging all interest rate risk. AACSB: AnalyticAccessibility: Keyboard NavigationBlooms: UnderstandDifficulty: 2 IntermediateRoss - Chapter 25 #20Section: 25.5Topic: Hedging 21.To protect against interest rate risk, the mortgage banker should: AACSB: AnalyticAccessibility: Keyboard NavigationBlooms: UnderstandDifficulty: 2 IntermediateRoss - Chapter 25 #21Section: 25.5Topic: Futures - interest rates
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22.Futures market transactions are commonly used to reduce risk. The most risk reduction can be obtained when the asset at risk and the futures contract: AACSB: AnalyticAccessibility: Keyboard NavigationBlooms: UnderstandDifficulty: 2 IntermediateRoss - Chapter 25 #22Section: 25.5Topic: Hedging 23.Hedging in the futures markets can reduce all risk if: AACSB: AnalyticAccessibility: Keyboard NavigationBlooms: UnderstandDifficulty: 2 IntermediateRoss - Chapter 25 #23Section: 25.5Topic: Hedging 24.Comparing long-term bonds with short-term bonds, long-term bonds are _____ volatile and therefore experience _____ price change than short-term bonds for the same interest rate shift. A. less; lessB. less; moreC.more; moreD. more; lessE. more; the same AACSB: AnalyticAccessibility: Keyboard NavigationBlooms: UnderstandDifficulty: 2 IntermediateRoss - Chapter 25 #24Section: 25.6Topic: Duration 25.When interest rates shift, the price of zero coupon bonds are ____ volatile: AACSB: AnalyticAccessibility: Keyboard NavigationBlooms: UnderstandDifficulty: 2 Intermediate Ross - Chapter 25 #25 Section: 25.6 Topic: Duration
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26.The duration of a pure discount bond is:
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