26-71 The characteristics of a CMO securities issue include 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.
E)the CMO securities are split into different tranches or groupings.

Question

Quizplus · Accepted Answer

CMO securities are not insured separately from the GNMA pass-through securities.

26-71 the Characteristics of a CMO Securities Issue Include the Following