If a cmo has 3 tranches a b and z an accrual tranche as


If a CMO has 3 tranches, A, B, and Z (an accrual tranche), as well as a residual class, answer the following question?

If the prepayment on a pool of mortgages increases from PSA 100 to PSA 150, what would happen to the expected maturity of the Z class?

Increase, decrease or stay the same?

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Financial Management: If a cmo has 3 tranches a b and z an accrual tranche as
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