Which of the Following Is NOT True of an R

Multiple Choice

Which of the following is NOT true of an R class CMO issue?

A) It is treated as "garbage class."
B) It is a high-risk investment class.
C) It gives the investor the rights to the over-collateralization and reinvestment income on the cash flows in the CMO trust.
D) Returns increase when interest rates increase.
E) It has a positive duration.