4. Consider hvo CMO structures using the same $1 bilion balance of MBS pools: Structure 1: $661 million PAC class, $339 million companion class Structure 2: $748 million PAC class, $252 million companion class a) Which structure offers the most prepayment protection to the PAC class? b) The option cost for the PAC class of which structure will be higher? Answe 1 1 4. Consider two CMO structures using the same $1 billion balance of MBS pools: Structure 1: $661 million PAC class, $339 million companion class Structure 2: $748 million PAC class, $252 million companion class 1 a) Which structure offers the most prepayment protection to the PAC class? 1 b) The option cost for the PAC class of which structure will be higher? 4. Consider hvo CMO structures using the same $1 bilion balance of MBS pools: Structure 1: $661 million PAC class, $339 million companion class Structure 2: $748 million PAC class, $252 million companion class a) Which structure offers the most prepayment protection to the PAC class? b) The option cost for the PAC class of which structure will be higher? Answe 1 1 4. Consider two CMO structures using the same $1 billion balance of MBS pools: Structure 1: $661 million PAC class, $339 million companion class Structure 2: $748 million PAC class, $252 million companion class 1 a) Which structure offers the most prepayment protection to the PAC class? 1 b) The option cost for the PAC class of which structure will be higher