In comparison to the mortgage securities we have previously discussed,the unique characteristic of a CMO is that:

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CMOs are issued in multiple security classes, known as tranches. Each tranche has its own unique maturity, cash flow, and credit characteristics, which allows investors to select the tranche that best fits their investment objectives and risk tolerance. This is the unique characteristic of CMOs compared to other mortgage securities. The other options are not accurate descriptions of CMOs.

In Comparison to the Mortgage Securities We Have Previously Discussed,the