if the basic principle of PAC mechanics is the partitioning of the collateral pool's outstanding principal balance. Btt}. into the principal components for the PAC. P{t} . and its Companion class. Ctt} . where {In} 2 max {0,{1- amp} max[, 3m - att} is determined rst and then the PAC class is assigned Sift} being the dened PAC schedule and o is the advance for the PAC. 1. Show that when B[t} a Stto that this is a slower than band eondition 2. Show when am a Stt} that this is faster than the PAC hand condition 3. What is the \"in-the-band" condition? Show this is so. 4. For an ID PAC, which of these is a \"windfall" to the ID PAC buyer when compared to the pricing expectationtoondition