Collateralized mortgage obligations are designed to: A. Eliminate contraction risk in support tranches. B. Distribute prepayment risk

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Collateralized mortgage obligations are designed to:

A. Eliminate contraction risk in support tranches.

B. Distribute prepayment risk to various tranches.

C. Eliminate extension risk in planned amortization tranches.

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Fixed Income Analysis

ISBN: 9781119627289

4th Edition

Authors: Barbara S. Petitt

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Question Posted: Nov 04, 2023 11:00 PM

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Collateralized mortgage obligations are designed to: A. Eliminate contraction risk in support tranches. B. Distribute prepayment risk

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The correct answer is B Distribute prepayment risk to various tranches Collateralized mortgage oblig...View the full answer

Fixed Income Analysis

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