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If you were to purchase the longest tranche of a sequential pay CMO, a) your class would be subject to the lowest prepayment risk. b)
If you were to purchase the longest tranche of a sequential pay CMO,
a) your class would be subject to the lowest prepayment risk.
b) your class would be subject to the greatest prepayment risk.
c) your class would be subject to the greatest likelihood of prepayment and extension risk, versus the other sequential pay classes offered.
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