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Assume that Ginnie Mae sponsored pass through securities have been acquired by another entity (e.g., Freddie Mac) and reissued as a Collateralized Mortgage Obligation or

Assume that Ginnie Mae sponsored pass through securities have been acquired by another entity (e.g., Freddie Mac) and reissued as a Collateralized Mortgage Obligation or CMO. In a CMO the respective tranches:

A.

Promise a different return (coupon) to investors

B.

The Ginnie Mae sponsored pass throughs have substantial credit risk which now becomes reissued through the CMO.

C.

Carries a different maturity or duration exposure

D.

A and C above

E.

All of the above

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