The purchaser of a mortgage passthrough security:
　　A. can select a tranche that offers the desired prepayment risk or maturity characteristics.
　　B. will receive semiannual payments that consist of interest, scheduled principal payments, and prepayments of principal.
　　C. has a claim to equal percentage shares of the interest and principal payments from a pool of mortgages.
　　D. hedges all prepayment risk.
　　Answer:C
　　Mortgage passthrough securities represent a proportionate claim to the cash flows from a pool of mortgages. These securities feature monthly (not semiannual) cash flows that consist of interest, scheduled principal payments, and principal prepayments. Collateralized mortgage obligations, not mortgage passthrough securities, have tranches with different prepayment risk.