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The Characteristics of a Collateralized Mortgage Obligation (CMO)securities Issue Include

Question 64

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The characteristics of a Collateralized Mortgage Obligation (CMO) securities issue include all of the following EXCEPT


A) the tranches will have different coupon rates.
B) the CMO securities are insured separately from the GNMA pass-through securities.
C) the principal payments are made totally to the earliest remaining tranche.
D) GNMA pass-through securities are used as collateral in a trust to support the CMOs.

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