A pass-through security is best characterized as

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A pass-through security is a type of mortgage-backed security where investors receive payments based on a pro rata share of the underlying pool of mortgages. This means they receive a portion of the interest and principal payments made by borrowers on the mortgages in the pool, less any fees or expenses. Therefore, choice B is the correct option as it describes the security with a pro rata claim to the underlying pool of assets.

A Pass-Through Security Is Best Characterized as