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?

• A)A-tranche
• B)B-tranche
• C)C-tranche
• D)Z-tranche
• E)All tranches will have equal lives.

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Definitions:

Heritability Estimates

Statistical measures that indicate how much of the variation in a trait within a population can be attributed to genetic differences.

IQ Scores

Numerical measurements derived from standardized tests designed to assess human intelligence.

Genetic Differences

Variations in the DNA sequences among individuals, which contribute to the biological diversity and hereditary traits within and across populations.

Fraternal Twins

Fraternal twins are siblings born at the same time as a result of two different eggs being fertilized by two different sperm, making them genetically similar to ordinary siblings rather than identical.