Question: Noting that these are agency-backed, what is the difference between a CMO with sequential payments, a CMO with an accrual bond, and a PAC CMO?

Noting that these are agency-backed, what is the difference between a CMO with sequential payments, a CMO with an accrual bond, and a PAC CMO? What is the PSA rate? How do these securities and the PSA rate help manage risk for an investor? Which is better for a financial institution like an insurance company or a pension fund: the mortgage pass-through or one of the CMOs in this question? Why?

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