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One particular kind of CMO is the "mortgage pass-through strip." It has just two classes of...

One particular kind of CMO is the "mortgage pass-through strip." It has just two classes of securities, known as
the:

A. "portfolio-only" and "individual-only"
B. "principal-only" and "interest-only"
C. "principal-only" and "income-only"
D. "payment-only" and "interest-only"
E. None of the above

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Answer #1

( c Entere sly1 explenatioo Mortagage backed instrciment congistin g a. c o f +wo distinct classes: interest onlu CTo) se curitiesnpni pal only (Po) securib es Tuo cl ass es . P rin cipa onty ( class that re ceiues nly the p rindipa! prom 4he underlging mortagages 2. Entevest ony - class that heceies just the interest

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