SIE practice questioneasyMortgage-backed securities
GNMA securities pay interest and principal to investors:
- ASemiannually
- BQuarterly
- CMonthly✓ Correct answer
- DAt maturity
Explanation
Why C — Monthly
GNMA (Ginnie Mae) securities pay both interest and principal monthly due to the structure of the underlying mortgages. Most traditional bonds pay interest semiannually or at maturity.
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