Consider 100mm MBS which has been structured into a front sequential and back sequential. In the first month after structuring the 100mm MBS receive a principal payment of 5mm. a. Assume the 100mm MBS are structured into 50% front sequential (bond AC) and 50% back sequential (bond BC). What percentage of bond AC pays off? How much of bond BC? b. Assume the 100mm MBS are structured into 25% front sequential (bond AD) and 75% back sequential (bond BD). What percentage of bond AD pays off? How much of bond BC? c. Which bond is more negatively convex, AC or AD? Why? d. What types of investors would you expect to buy the front sequential? Why? e. What types of investors would you expect to buy the back sequential? Why?