1. Both US Treasury bonds and mortgage-backed securities (MBS) explicitly guaranteed by the US government (e.g., FHA) have the same low credit risk. Why do the MBS offer higher yields than the Treasury bonds of the same maturity?
2. In your words, to dicussion the importance of independent auditing. (at least 150 words)
3. If the interest-rate increases are expected to be more aggressive, which types of bonds should the current bond holders sell? Focus on maturity and coupon of the bonds.