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please answer question B Question 6 A. Explain the different tranches of CDOs and the distribution rules of Income and Principal Cash Flows on CDOs.

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please answer question B

Question 6 A. Explain the different tranches of CDOs and the distribution rules of Income and Principal Cash Flows on CDOs. Discuss which tranche offers maximum protection to the investment holder. (10 points) B. Using the answer to part A, elaborate further in which way CDOS can create a liquidity squeeze in the financial markets. (5 points) (Total 15 Points)

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