For your provided solutions, please be sure to include & clearly denote either " A ", " B ", or " C " for each of the 10 Parts ... Thank you!

QUESTION 1 In collateralize mortgage obligation (CMO) with a sequential pay structure, the shorter-term tranches offer protection against term tranches provide protection against risk while longer risk. credit / liquidity extension/contraction contraction /extension QUESTION 2 Consider an inverse floating rate collateralize mortgage obligation (CMO) bond class with the following characteristics Cap (K)-30% Coupon leverage (L)-2.5 . .Reference rate 1-month LIBOR lf 1-month LIBOR-3.25% at the beginning of the month, the inverse floater coupon rate for the month is closest to: 18.60% 21.88% 23.56% QUESTION 3 Planned amortization class (PAC) tranches protect against which of the following types of risk? Contraction risk Extension risk Contraction risk and extension risk. QUESTION 4 Which of the following most accurately describes the difference between floating-rate tranches in a collateralized mortgage obligation (CMO) structure and floating-rate notes in the corporation bond market? The principle balance in a CMO's floating-rate tranche does not change over the life of the bond, while the principal balance declines over time for floating-rate note in the corporation bond market. The principle balance in a CMO's floating-rate tranche declines over time, while the principal does not change for floating-rate notes in the corporation bond market. The principle balance in a CMO's floating-rate tranche increases over time, while the principal balance does not change for floating-rate notes in the corporate bond market. QUESTION 5 Which of the following is most accurate regarding interest-only (IO) security classes in a collateralized mortgage obligation (CMO) structure? IO prices tend to move in the same direction as changes in mortgage rates. IO prices exhibit less price volatility than the pass-through when mortgage rates change IO investors prefer relative high prepayment speeds