Question: A mortgage pool is divided into a basic sequential CMO structure that includes A-, B-, C-, and Z-tranches. Which tranche will initially be paid mortgage


A mortgage pool is divided into a basic sequential CMO structure that includes A-, B-, C-, and Z-tranches. Which tranche will initially be paid mortgage principal? Multiple Choice A-tranche B-tranche C-tranche Z-tranche all tranches on a pro-rata basis You have a 30-year, fixed-rate mortgage with equal monthly payments. The amount of interest you pay each month will and the amount of principal you pay each month will Multiple Choice decrease; decrease decrease; increase increase; decrease increase; increase remain constant; remain constant
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