The ___________ is an accrual class of a CMO that makes a payment to bondholders only when preceding CMO classes have been retired:
A)A Class
B)B Class
C)Z Class
D)R Class

Question

Quizplus · Accepted Answer

The Z Class is an accrual class of a CMO that makes a payment to bondholders only when preceding CMO classes have been retired. This means that the Z Class will not receive any interest payments until all of the preceding classes have been fully paid off. This makes the Z Class the most subordinate class in a CMO structure.

The ___________ Is an Accrual Class of a CMO That