In regard to a CMO, which of the following bonds have the shortest average life with a minimum of prepayment protection?
A)Class A bonds.
B)Class B bonds.
C)Class C bonds.
D)Class Z bonds.
E)Class R bonds.

Question

Quizplus · Accepted Answer

Class A bonds in a Collateralized Mortgage Obligation (CMO) typically have the shortest average life and are the first to receive payments from the pool of mortgages, thus having minimal prepayment protection compared to other classes.

In Regard to a CMO, Which of the Following Bonds