Question: Question 1 7 5 pts Consider a collateralized mortgage obligation ( CMO ) containing both a planned amortization tranche ( PAC ) and a support

Question 17
5 pts
Consider a collateralized mortgage obligation (CMO) containing both a planned amortization tranche (PAC) and a
support tranche. Compared to the extension and contraction risks of the support tranche, the PAC tranche carries:
less contraction risk but more extension risk.
more contraction risk but less extension risk.
less of both contraction and extension risk.
Question 1 7 5 pts Consider a collateralized

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