Question: Answer the below questions. (a) By creating a CMO, an issuer eliminates the prepayment risk associated with the underlying mortgages. Do you agree with this

Answer the below questions.
(a) “By creating a CMO, an issuer eliminates the prepayment risk associated with the underlying mortgages.” Do you agree with this statement?
(b) Wall Street often refers to CMOs as “customized securities.” Explain why.

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