Which of the following is not true regarding collateralized mortgage obligations (CMOs)?
A)Interest earned on CMOs is exempt from state income taxes.
B)CMO yields are generally higher than comparable Treasury yields.
C)CMOs exhibit little default risk.
D)All of the above are true.
E)Only a.and c.are true.

Question

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The Answer of Which of the following is not true regarding collateralized mortgage obligations (CMOs)?
A)Interest earned on CMOs is exempt from state income taxes.
B)CMO yields are generally higher than comparable Treasury yields.
C)CMOs exhibit little default risk.
D)All of the above are true.
E)Only a.and c.are true.

Which of the Following Is Not True Regarding Collateralized Mortgage