This is an accrual class of a CMO that makes a payment to bondholders only when preceding CMO classes have been retired.
A)Class A bonds.
B)Class B bonds.
C)Class C bonds.
D)Class Z bonds.
E)None of the options.

Question

Quizplus · Accepted Answer

Class Z bonds are the last class to receive payments in a CMO structure. They are sometimes referred to as "Accrual bonds" because they don't receive cash flow until all the other classes of bonds have been retired.

This Is an Accrual Class of a CMO That Makes