QUESTION 6 Mark all the true statements about CMOs: In a sequential pay CMO, the tranche that gets paid last assumes the least default risk CMO can have several classes (tranches) of securities backed by the same pool of mortgages Tranche stands for "slice" in french In a sequential pay CMO, all tranches get their interest payments in the first month except for Z-bonds In a sequential pay CMO, the tranche that gets paid off first is protected against con- traction risk QUESTION 6 Mark all the true statements about CMOs: In a sequential pay CMO, the tranche that gets paid last assumes the least default risk CMO can have several classes (tranches) of securities backed by the same pool of mortgages Tranche stands for "slice" in french In a sequential pay CMO, all tranches get their interest payments in the first month except for Z-bonds In a sequential pay CMO, the tranche that gets paid off first is protected against con- traction risk