a. By creating a CMO, an issuer eliminates the prepayment risk associated with the underlying mortgages. Do

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a. "By creating a CMO, an issuer eliminates the prepayment risk associated with the underlying mortgages." Do you agree with this statement?

b. Wall Street often refers to CMOS as "customized securities." Explain why.

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Bond Markets Analysis And Strategies

ISBN: 9780130402660

4th Edition

Authors: Frank J. Fabozzi

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a. By creating a CMO, an issuer eliminates the prepayment risk associated with the underlying mortgages. Do

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Bond Markets Analysis And Strategies

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