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SOFE AFE Exam - Topic 1 Question 96 Discussion

Actual exam question for SOFE's AFE exam

Question #: 96
Topic #: 1

[All AFE Questions]

The two most common types of dollar rolls are:

AFixed-coupon and yield-maintenance agreements

BVariable-coupon and yield-maintenance agreements

CFixed-coupon and Accounting agreements

DVariable -coupon and Principal agreements

Show Suggested Answer

Suggested Answer: A

by Dylan at Mar 09, 2025, 05:30 AM

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Denna

7 months ago

I agree, A seems right!

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Jonelle

7 months ago

Fixed-coupon and yield-maintenance are the classics!

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Katheryn

7 months ago

I thought it was B?

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Solange

7 months ago

Wait, are you sure about that?

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Kanisha

8 months ago

A is definitely one of them!

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Emeline

8 months ago

I thought fixed-coupon was a common type, but I can't remember if it's with accounting or yield-maintenance agreements.

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Deeanna

8 months ago

I feel like variable-coupon could be part of the answer, but I can't recall if it's paired with yield-maintenance or something else.

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Tonette

8 months ago

I remember practicing a question similar to this one, and I think yield-maintenance agreements were definitely mentioned.

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Hillary

9 months ago

I think the answer might be A, but I'm not entirely sure about the terms used in dollar rolls.

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Isabella

9 months ago

I'm a bit confused by the wording of this question. The options seem to be getting at some technical details of dollar roll agreements that I'm not fully comfortable with. I'll make an educated guess, but I'm not 100% confident in my answer.

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Fernanda

9 months ago

Okay, let me think this through step-by-step. Dollar rolls involve the sale and repurchase of mortgage-backed securities, right? And the two main types are based on whether the coupon is fixed or variable, and whether the yield is maintained or not. I think option A sounds right, but I'll double-check my notes to be sure.

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Willow

9 months ago

Hmm, I'm not entirely sure about this one. I know dollar rolls have to do with fixed-income securities, but I'm not familiar with the specific terminology of "fixed-coupon" and "yield-maintenance" agreements. I'll have to think this through carefully.

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Denny

9 months ago

This looks like a straightforward question about the types of dollar rolls. I'm pretty confident I know the answer, so I'll just go with option A.

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Ardella

1 year ago

B) Variable-coupon and yield-maintenance agreements. Easy peasy, lemon squeezy. This one's a no-brainer.

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Sylvia

1 year ago

Variable-coupon agreements can be more flexible depending on market conditions.

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Jacquelyne

1 year ago

It's important to understand the differences between fixed-coupon and variable-coupon agreements.

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Izetta

1 year ago

I agree, variable-coupon and yield-maintenance agreements are the most common types of dollar rolls.

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Fernanda

1 year ago

I think Talia might be right, variable-coupon and yield-maintenance agreements sound familiar.

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Talia

1 year ago

I'm not sure, but I think it's B) Variable-coupon and yield-maintenance agreements.

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Elenore

1 year ago

Ah, the age-old question of dollar rolls. My grandpappy used to say, 'If it ain't fixed-coupon and yield-maintenance, it ain't worth a dime.'

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Marylou

1 year ago

Fixed-coupon and Accounting agreements? What is this, an accounting exam? I thought we were talking dollars and rolls, not debits and credits.

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Alva

1 year ago

Variable-coupon and Principal agreements? Nah, that's just asking for trouble. Gotta stick with the classics, you know?

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Vallie

1 year ago

C) Fixed-coupon and Accounting agreements

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Bethanie

1 year ago

B) Variable-coupon and yield-maintenance agreements

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Fausto

1 year ago

A) Fixed-coupon and yield-maintenance agreements

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Reid

1 year ago

A fixed-coupon and yield-maintenance agreement sounds like the way to go. I can almost smell the profit potential from here!

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Tarra

1 year ago

Have you had success with those types of dollar rolls before?

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Gaynell

1 year ago

I agree, they offer good profit potential.

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Phuong

1 year ago

Fixed-coupon and yield-maintenance agreements are indeed popular choices.

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Vallie

1 year ago

I agree with Lisbeth, fixed-coupon and yield-maintenance agreements make sense.

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Lisbeth

1 year ago

I think the answer is A) Fixed-coupon and yield-maintenance agreements.

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