Question: 72. A sequential-pay CMO has two tranches. Principal is paid to Tranche S until it is paid off, after which principal is paid to Tranche

72. A sequential-pay CMO has two tranches. Principal is paid to Tranche S until it is paid off, after which principal is paid to Tranche R. Compared to Tranche R, Tranche S has: A) more contraction risk and less extension risk. B) less contraction risk and more extension risk. C) more contraction risk and more extension risk

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