Which of the following characteristics apply to collateralized mortgage obligations? I. All bondholders receive a pro-rata share of all interest payments. II. CMOs are derivative securities created from mortgage-backed bonds. III. All principal payments are paid to the shortest remaining tranche. IV. CMOs have definite maturity dates for each tranche. A) I and II only. B) I and III only. C) I, II and III only. D) II, III and IV only.