AIWMI Exam CCRA-L2 Topic 7 Question 104 Discussion

Actual exam question for AIWMI's CCRA-L2 exam

Question #: 104
Topic #: 7

Statement 1: The Yields on the MBS PTCs are normally higher than the yields on the corporate bonds of similar ratings.

Statement 2: The reason for difference in yields on the corporate bonds and similarly rated PTCs is on account of the optionality in the PTC, the unfamiliarity of the structure and uncertainties in respect of legal and structural issues.

Which of the above statements is correct?

ANone of the statements

BBoth the statements

COnly Statement 2 is correct

DOnly Statement 1 is correct

Show Suggested Answer

Suggested Answer: D

by Judy at Dec 10, 2024, 03:31 PM

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Jovita

3 days ago

I agree with Melvin, Statement 2 makes more sense.

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Melvin

6 days ago

I disagree, I believe only Statement 2 is correct.

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Ernie

13 days ago

The yields on MBS PTCs are definitely higher than corporate bonds, no doubt about that. I agree with Statement 1 all the way.

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Page

17 days ago

I think both statements are correct.

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