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Finance > Targeted Amortization Class (Tac) Bonds
The following information is about Targeted Amortization Class (Tac) Bonds.
Targeted Amortization Class (Tac) Bonds Defined
class='define'>Bonds offered as a tranche class of some CMOs, according to a sinking fund schedule. They differ from PAC bonds whose amortization is guaranteed as long as prepayments on the underlying mortgages do not exceed certain limits. A TAC's schedule is met at only one prepayment rate.
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