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A Mortgage Pool Is Divided into a Basic Sequential CMO

question 18

Multiple Choice

A mortgage pool is divided into a basic sequential CMO structure that includes A-, B-, C-, and Z-tranches. Which tranche will have the longest life?


Definitions:

Hypertension

A chronic medical condition characterized by consistently high blood pressure, which can lead to serious health problems such as heart disease and stroke.

Indigenous

Pertaining to groups of people native to a particular region or country, especially those who maintain traditions or other aspects of an early culture associated with the territory.

Cocoa

A powder made from roasted and ground cacao seeds, used in making chocolate, as well as some beverages and baked goods.

Dormancy

Period of temporarily suspended metabolism.

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