CFA Practice Question

There are 764 practice questions for this topic.

CFA Practice Question

Consider the following four CMO structures:

Holding all other factors constant, which PAC tranche has the most protection against prepayment risk?
A. A or B
B. C
C. D
Explanation: The PAC tranche in CMO D has the biggest support tranche.

User Contributed Comments 0

You need to log in first to add your comment.