Suppose you are a therapist meeting a client for the first time and you are explaining confidentiality. Name the three exceptions to confidentiality that was explained by your Professor and in the text:

How can thinking about your audience affect how you plan your writing?

Create one question that could potentially be included in future final exams.

Before you begin writing an essay, you have to consider three things.

Consider the same four-year, Treasury bond that pays an 4 percent coupon annually and is trading at a yield to maturity of 5%   What is the convexity of the bond?

A Financial Institution (FI) originates a pool of 500 30-year mortgages with monthly payments, each averaging $150,000 with a mortgage coupon rate of 8 percent. Assume that the entire mortgage portfolio is securitized to be sold as GNMA pass-throughs. The GNMA credit risk insurance fee is 6 basis points and that the FI’s servicing fee is 19 basis points. Assume no prepayments.   What is the annual rate of return for GNMA bondholders?

Which of the following is not a possible reason for IPO underpricing, as shown by the studies on this topic?

In practice, the duration gap of banks is unaffected by how sensitive deposits are to interest rate changes. 

A Financial Institution (FI) originates a pool of 500 30-year mortgages with monthly payments, each averaging $150,000 with a mortgage coupon rate of 8 percent. Assume that the entire mortgage portfolio is securitized to be sold as GNMA pass-throughs. The GNMA credit risk insurance fee is 6 basis points and that the FI’s servicing fee is 19 basis points. Assume no prepayments. What is the total amount of monthly mortgage payments from mortgage borrowers to the pool?

Consider the same four-year, Treasury bond that pays an 4 percent coupon annually and is trading at a yield to maturity of 5% Use the duration to approximate the change in bond price if interest rates increase by 2%