Question: Why do mortgage - backed securities ( MBS ) and corporate bonds often trade at a spread above Treasury yields? Group of answer choices They

Why do mortgage-backed securities (MBS) and corporate bonds often trade at a spread aboveTreasury yields?
Group of answer choices
They offer tax advantages that Treasuries do not.
They are more liquid than Treasury securities.
They are priced based on the performance of equity markets.
They carry higher credit and/or prepayment risks compared to Treasuries.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!