Question: Suppose that the $1 billion of collateral in Question 14 was divided into a PAC bond with a par value of $800 million and a

Suppose that the $1 billion of collateral in Question 14 was divided into a PAC bond with a of $800 million and a support bond with a of $200 million. Will the PAC bond in this CMO structure have more or less protection than the PAC bond in Question 14?

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