Question: Mark all the true statements about CMOs: In a sequential pay CMO, the tranche that gets paid off first is protected against con-traction risk CMOs

Mark all the true statements about CMOs: In a sequential pay CMO, the tranche that gets paid off first is protected against con-traction risk CMOs are a subset of MBS CMO can have several classes (tranches) of securities backed by the same pool of mortgages In a sequential pay CMO with an A, B and Z tranche, all tranches get their interest payments in the first In a sequential pay CMO, the tranche that gets paid last assumes the least default risk

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