Respuesta :
The solution is option (b). Investors are drawn to pass-through bonds for all of the reasons listed below, with the exception of the timing of the cash flows.
What draws investors to bonds?
Due to the reliable income they provide, bonds are a favorite among investors. Ordinarily, interest on bonds is paid twice annually. Bonds can be used as a way to protect your money while investing because, if held to maturity, they will return the full principal to the bondholder.
A passthrough bond is what?
A group of fixed-income reassuring by a collection of assets is referred to as a pass-through security, also known as a pay-through security. Every security in the pass-through pool stands in for a sizable number of obligations, such as thousands of auto loans or hundreds of home mortgages.
A pass-through investment is one that satisfies the conditions of this section and is made in a firm that solely engages in activities that you can carry out directly.
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