Question
Which statement is NOT TRUE about a Z tranche security? A Z tranche does not get any payment until all other tranches are paid off
Which statement is NOT TRUE about a Z tranche security?
| A Z tranche does not get any payment until all other tranches are paid off | ||
| The interest on a Z tranche gets used for interest payments on more senior tranches
| ||
| A Z tranche has a higher coupon rate than the more senior A-tranche
| ||
| A Z tranche has a higher WAL than the more senior A-tranche
| ||
|
A Z tranche gets it's name from a Zero-coupon bond
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International Financial Reporting And Analysis
Authors: David Alexander, Ann Jorissen, Martin Hoogendoorn
8th Edition
978-1473766853, 1473766850
