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43. Mortgage Tree decides to begin to sell private label CMO's. It structures a new CMO with a Z trache that does not have a

43. Mortgage Tree decides to begin to sell "private label" CMO's. It structures a new CMO with a "Z" trache that does not have a coupon and estimated cash pay out in 5 years. What potential issue could arise from this investment structure?

A. Insider Trading

B. Double Taxation

C. Credit Risk

D. Pre-payment Risk

E. Phantom Income Tax to the holder

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