These Bonds of a CMO Have Some Prepayment Protection and Expected

question 79

Multiple Choice

These bonds of a CMO have some prepayment protection and expected durations of five to seven years depending on the level of interest rates and are primarily purchased by pension funds and life insurance companies.

• A)Class A bonds.
• B)Class R bonds.
• C)Class C bonds.
• D)Class Z bonds.
• E)Class B bonds.