SIE Exam Practice Question 738

Question: 738

Which of the following is a type of debt security that repackages and directs the payments of principal and interest from a collateral pool to different types and maturities of securities?

Correct Answer: A

Explanation:

A CMO (collateralized mortgage obligation) is a type of debt security that repackages and directs the payments of principal and interest from a collateral pool to different types and maturities of securities.

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