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 above.

Question

Quizplus · Accepted Answer

Class Z bonds are the accrual class of a CMO that makes payments to bondholders only when preceding CMO classes have been retired. They are typically the last class to receive payment and have the longest average life of all CMO classes.

This Is an Accrual Class of a CMO That Makes