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QUESTION 9 has 3 tranches A, B, and Z an accrual tanche), as well as a residual class. If the prepayment on the pool of

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QUESTION 9 has 3 tranches A, B, and Z an accrual tanche), as well as a residual class. If the prepayment on the pool of mortgages that supports the CMO decreases from CPR 10% to CPR 5% ehat uld happen to the expected matuit ofthe A class? O Remain the same O Cannot be determined with the information given Increare Decrease QUESTION 10 Check all true tatements regarding PACS PAC proteet investos against extension risk PACs don't prot ainst contraction riak WithinPAC band, a PAC 00 mpanion tranche's oashflowsre more volatile than the PAC tranche's oashflore PACs offer the investor a fixed prinoipal payment schedule if prepsyment assumptions are met Only one PSA factor prepayment assumption threshold is used when de fining a PACs cashflons ct investor ag

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