26-87 Identify the residual class of a CMO that gives the owner the right to any remaining collateral in the trust after all other bond classes have been retired plus any reinvestment income earned by the trust.
A)Class A bonds.
B)Class B bonds.
C)Class C bonds.
D)Class Z bonds.
E)Class R bonds.

Question

Quizplus · Accepted Answer

Class R bonds are the residual class in a CMO structure, giving the owner rights to any remaining collateral and reinvestment income after other bond classes are retired.

26-87 Identify the Residual Class of a CMO That Gives