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1. CMO tranches with higher prepayment risk will be paid off earlier. True or False 2. CDS buyers cannot earn profits if the issuer did

1. CMO tranches with higher prepayment risk will be paid off earlier.

True or False

2. CDS buyers cannot earn profits if the issuer did not default.

True or False

3. Two otherwise similar bonds, the bond with higher recovery rate has higher yield than the one with lower recovery rate.

True or False

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