QUESTION 20 Which of the following statement regarding collateralized mortgage obligations (CMO) is least accurate? CMOS are divided into tranches O CMOS are subject to interest rate risk and prepayment risk CMOS are not subject to default risk. O CMOS allow investors to match the timing of their cash inflows to their cash outflows CU

Which of the following statement regarding collateralized mortgage obligations (CMO) is least accurate? CMOs are divided into tranches CMOs are subject to interest rate risk and prepayment risk CMOS are not subject to default risk. CMOs allow investors to match the timing of their cash inflows to their cash outfows