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56 . ) A pays out cash flows from subprime mortgage - backed securities in different tranches , with the highest rated tranch paying out

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56 . ) A pays out cash flows from subprime mortgage - backed securities in different tranches , with the highest rated tranch paying out first , while lower ones paid out less if there were losses on the mortgage- backed securities A ) Collateralized debt obligation ( CDO ) B ) Adjustable rate mortgage C ) Negotiable CD D ) Discount bond

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