Which of the Following Statements Regarding CMOs Is False

Which of the following statements regarding CMOs is false?

A) CMOs are zero-coupon bonds that are backed by real estate.
B) Relative to other bonds, CMOs are illiquid.
C) CMO investors are divided into classes, and the class determines when the investor will receive payments of principal.
D) CMOs are considered to have lower risk and, therefore, offer lower returns.