Question: If a CMO has 3 tranches, A , B , and Z ( an accrual tranche ) , as well as a residual class, answer
If a CMO has tranches, A B and Z an accrual tranche as
well as a residual class, answer the following question?If the prepayment on a pool of mortgagesdecreases from CPR
to CPR what would happen to the expected maturity of the A
class?Increase, decrease, or stay the same?
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