1. Which statement is NOT TRUE about a Z tranche security?

a. A Z tranche does not get any payment until all other tranches are paid off.

b. The interest on a Z tranche gets used for interest payments on more senior tranches

c. A Z tranche has a higher coupon rate than the more senior A-tranche

d. A Z tranche has a higher WAL than the more senior A-tranche

e. A Z tranche gets it's name from a zero-coupon bond

Which of the following securities are NOT always issued together under one CMO?

a. Senior tranche / Junior tranche

b. Interest only tranche/principal only tranche

c. floater tranche / inverse floater tranche

d. residual tranche / z-tranche