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A CMO has 3 tranches, A, B, and Z (an accrual tranche), as well as a residual class. If the prepayment on the pool of
A CMO has 3 tranches, A, B, and Z (an accrual tranche), as well as a residual class. If the prepayment on the pool of mortgages that supports the CMO decreases from CPR 10% to CPR 5% when doing projec...
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