26-71 the Characteristics of a CMO Securities Issue Include the Following

question 68

Multiple Choice

26-71 The characteristics of a CMO securities issue include the following EXCEPT

• A)the tranches will have different coupon rates.
• B)the CMO securities are insured separately from the GNMA pass-through securities.
• C)the principal payments are made totally to the earliest remaining tranche.
• D)GNMA pass-through securities are used as collateral in a trust to support the CMOs.
• E)the CMO securities are split into different tranches or groupings.

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Definitions:

Real Property

Land and anything permanently affixed to it, such as buildings and structures, legally recognized as immovable property.

Permanent Improvement

An addition or change to a piece of property that increases its value and is designed to last for a long period of time, such as building an extension.

Durable Power of Attorney

A legal document that grants one person the authority to act on behalf of another person in financial or health matters, remaining effective even if the grantor becomes incapacitated.

Incapacitated

Refers to a state in which an individual or entity is temporarily or permanently unable to perform their duties or activities due to physical or mental limitations.