Early Prepayments on Mortgages Backing a CMO Are Normally Allocated

question 104

True/False

Early prepayments on mortgages backing a CMO are normally allocated to the earliest existing tranche maturity.

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Definitions:

Fuel Wood

Wood intended for use as fuel, primarily for cooking, heating, and sometimes for generating electricity, especially in rural areas.

Terrestrial Plants

Plants that grow on land as opposed to aquatic environments, adapted to extract nutrients and water from soil through their root systems.

Diverse Array

Refers to a wide variety or assortment of elements or items.

Seed Trees

Individual trees left standing after logging to provide seeds for the natural regeneration of the forest.