Response to the following problems:
1. What is the Government National Mortgage Association? How does this organization play a role in secondary mortgage markets?
2. What is the Federal National Mortgage Association? How does this organization play a role in secondary mortgage markets?
3. Describe a collateralized mortgage obligation. How is a CMO created?
4. What is a mortgage-backed bond? Why do financial institutions issue MBBs?
If possible, please give examples to better understand your response.