Bullet Corporate Bond?

In Mock2 it says the investment objective is to purchase an MBS CMO with principal repayments that will approximate the principal repayment of a “bullet” corporate bond. WHat the HECK is a bullet corporate bond?

bullet - all repayment is done at once

So should it have a wide or narrow effective collar? and why?

real narrow collar --> replicates a bullet kinda portfolio

Well, we know dinesh is the mole, so you can bet its a wide collar.

iT IS WIDE collar and narrower PAC window. Can someone explain why?

I think it is b/c wide collar b/c higher probability of making you stay within the collar (can’t think of right term…something about prepayments speeds??like psa?) and narrower PAC window b/c in narrows down the time frame (i think for the question it was like a year compared to some that were 2 years) I realize that probably doesn’t help at all…don’t have the book with me.