CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

Sequential-pay CMOs are structured so that each class of securities ______.
A. is retired sequentially
B. receives coupon payments sequentially
C. receives prepayments on a pro-rata basis
Explanation: All prepayments are used to repay the first class; after the first class has been paid off, prepayments are used to repay the second class.

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