Series 7 - General Securities Representative Exam
Which of the following is NOT TRUE about a Plain Vanilla CMO?
It is also known as a sequential pay CMOA
It is the most basic type of CMOB
It pays interest on all of its existing tranches at the same timeC
They have a set maturity date and no prepayment riskD
Plain Vanilla CMOs do not have a predetermined maturity date. They also have prepayment risk; as a tranche can be called sooner than expected