AIWMI Exam CCRA-L2 Topic 1 Question 96 Discussion

Actual exam question for AIWMI's CCRA-L2 exam

Question #: 96
Topic #: 1

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 Stevie at Sep 08, 2024, 02:31 PM

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Chaya

12 days ago

Wait, wait, wait. Are we supposed to be learning finance or playing a guessing game? This question sounds like it was written by someone who's been watching too many Wall Street movies. I'm going with A, just to keep them on their toes.

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Marti

2 days ago

A) None of the statements

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Shizue

15 days ago

I think Statement 1 is correct because MBS PTCs do tend to have higher yields.

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Graciela

17 days ago

I agree with Quentin, Statement 2 makes more sense to me.

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Quentin

20 days ago

I disagree, I believe only Statement 2 is correct.

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Rickie

21 days ago

Dude, this is a total gimme. The answer is clearly D. I mean, who doesn't know that MBS PTCs have higher yields than corporate bonds? It's like, finance 101 or something.

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Laurel

2 days ago

Definitely, Statement 1 is the correct one here.

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Werner

3 days ago

Yeah, it's basic finance knowledge. Statement 1 is correct.

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Lizette

5 days ago

Yeah, it's basic knowledge in finance. Statement 1 is correct.

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Emilio

6 days ago

I agree, the answer is clearly D. MBS PTCs do have higher yields than corporate bonds.

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Stephanie

8 days ago

I agree, the answer is clearly D. MBS PTCs do have higher yields than corporate bonds.

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Shenika

23 days ago

I think both statements are correct.

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Tegan

29 days ago

Hmm, I dunno. I'm leaning towards B. Both statements sound reasonable to me. Although, if I had to pick one, I'd go with Statement 2. The optionality and uncertainty factors seem like a pretty good explanation for the yield difference.

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Alise

5 days ago

User 1: I think both statements make sense.

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Cheryl

1 months ago

I'm pretty sure the answer is C. Statement 2 makes a lot of sense, what with the optionality and all that structural stuff. The corporate bonds are just so straightforward, you know?

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Sylvie

1 months ago

Yeah, the optionality and uncertainties in PTCs definitely play a role in the higher yields compared to corporate bonds.

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Miesha

1 months ago

I think you're right, Statement 2 does seem to explain the difference in yields between the two.

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