The longest-term tranche of a sequential-pay CMO is most likely to have the lowest: A. Average life.

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The longest-term tranche of a sequential-pay CMO is most likely to have the lowest:

A. Average life.

B. Extension risk.

C. Contraction risk.

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Fixed Income Analysis

ISBN: 9781119850540

5th Edition

Authors: Barbara S. Petitt

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Question Posted: Nov 04, 2023 11:00 PM

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The longest-term tranche of a sequential-pay CMO is most likely to have the lowest: A. Average life.

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B Extension risk In a sequentialpay Collateralized Mortgage Obligation CMO the longestte...View the full answer

Fixed Income Analysis

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