Question: Which tranche in a collateralized mortgage obligation (CMO) structure is most suitable for an investor who expects interest rates to fall? A floatingrate tranche. An

Which tranche in a collateralized mortgage obligation (CMO) structure is most suitable for an investor who expects interest rates to fall?

A floatingrate tranche.

An inverse floatingrate tranche.

The first tranche in a sequentialpay CMO.

Which tranche in a collateralized mortgage obligation (CMO) structure is most suitable for an investor who is willing to take on significant contraction risk and extension risk in exchange for a higher expected rate of return?

A support tranche in a PAC bond structure.

The first tranche in a sequentialpay CMO.

An inversefloating rate tranche.

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