Task: Class Definition Understanding (ontology: Business_Finance/Financial_Industry_Business_Ontology)

Which of the following definitions best describes 'residual tranche'?

A. A the concept is a tranche that is keyed to an index and a spread.
B. Specific kinds of tranche are modeled for example and investigation only and have been removed from the diagrams. These will be removed from the final model.
C. Unknown Further notes: Verify whether the concept and Support Tranche are meant to be in the same list of types as PAC etc. i.e. can a tranche not be PAC and Residual? this looks suspicioulsy like two semantics.
D. Principal Only tranche. This tranche will only pay principal.

Answer: Unknown Further notes: Verify whether the concept and Support Tranche are meant to be in the same list of types as PAC etc. i.e. can a tranche not be PAC and Residual? this looks suspicioulsy like two semantics.