Question
1) A pool of mortgages contains 3.75%, 30-year loans with the total beginning balance of $99.57 million. In the first month, the total payments from
1) A pool of mortgages contains 3.75%, 30-year loans with the total beginning balance of $99.57 million. In the first month, the total payments from the pool were $495.2 thousand. What are the total prepayments, to the nearest $0.01 thousand? E.g., if your answer is $25,345.39, record it as 25.35. Assume no defaults.
2) A pool of mortgages contains 3%, 15-year loans with the total beginning balance of $100 million. The pool backs 90 principal-only (PO) shares and 104 interest-only (IO) shares. Monthly expenses and fees amount to 0.04% of the beginning-of-the-month balance (they are subtracted from the interest portion). In the first month, the total payments from the pool were $699.7 thousand. What was the cash flow per PO share (to the nearest dollar)? Assume no defaults.
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