a. If interest rates continue to decline, the interest-only CMOs will take a hit. b. Estimating the

Question:

a. "If interest rates continue to decline, the interest-only CMOs will take a hit."
b. "Estimating the proper value of CMOs is like estimating the proper value of a baseball player; the proper value is much easier to assess five years later."
c. "When purchasing principal-only (PO) CMOs, be ready for a bumpy ride."