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Problem 5 If the basic principle of PAC mechanics is the partitioning of the collateral pool's outstanding principal balance, B(t), into the principal components for the PAC, P(t) , and its Companion class, C(t) , where C(t) = max 0, (1-a)B(t) - max [0, S(t) -aB(t)]} is determined first and then the PAC class is assigned - S(t) being the defined PAC schedule and a is the advance for the PAC. (32) 1. Show that when B(t) 2 S(t)/a that this is a slower than band condition. (8) 2. Show when B(t)