All of the following statements regarding Government National Mortgage Association (GNMA) pass-through securities are true EXCEPT:

All of the following statements regarding Government National Mortgage Association (GNMA) pass-through securities are true EXCEPT:


A) the minimum initial investment is $25,000.

B) investors own an undivided interest in a pool of mortgages.

C) GNMAs are considered to be the riskiest of the agency issues.

D) investors receive a monthly check representing both interest and a return of principal.



Answer: C) GNMAs are considered to be the riskiest of the agency issues.


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