Through return of principal factor into security structure

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1. If you bought 300 shares of NKE at a price of $52.00 per share and your initial and maintenance margin is 50% and 32% respectively, what does your balance sheet look like if you deposit the initial margin in your account? At what price will you receive a margin call?

2. How does Fannie Mae generally structure mortgage-backed bonds, and how does pass-through return of principal factor into the security’s structure? Also, how does the change in yields spur more of less MBS prepayment risk within different CMO tranches?

Reference no: EM132052784

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