题目
The longest-term tranche of a sequential-pay CMO is most likely to have the lowest:
选项
A.average life.
B.extension risk.
C.contraction risk.
答案
C
解析
： C is correct. For a CMO with multiple sequential-pay tranches, the longest-term tranche will have the lowest contraction (prepayments greater than forecasted) risk because of the protection against this risk offered by the other tranches. The longest-term tranche is likely to have the highest average life and extension risk because it is the last tranche repaid in a sequential-pay tranche. ： C是正确的。对于具有多个连续支付层级的CMO，由于其他层级提供了对该风险的保护，最长期限的层级将具有最低的收缩（预付款大于预测）风险。最长期限的层级可能具有最高的平均寿命和延期风险，因为它是按顺序支付部分偿还的最后一层级。