R Class Is

question 70

Multiple Choice

R class is:

• A)an accrual class of a CMO that makes a payment to bondholders only when preceding CMO classes have been retired
• B)the residual class of a CMO, giving the owner the right to any remaining collateral in the trust after all other bond classes have been retired plus any reinvestment income earned by the trust
• C)a bond that has some prepayment protection and expected durations of five to seven years depending on the level of interest rates
• D)a bond that has the shortest average life with a minimum of prepayment protection.They are, therefore, of no interest to investors seeking short-duration mortgage-backed assets

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Definitions:

Spinal Nerves

Nerves that originate from the spinal cord and branch out to various parts of the body, carrying messages to and from the brain.

Vertebral Column

A series of vertebrae extending from the skull to the lower back, providing the main support for the upper body and encasing the spinal cord.

Trochlea

Structure shaped like or serving as a pulley or spool.

Humerus

The extended arm bone stretching from the shoulder down to the elbow.