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A pool of mortgages contains 3%, 15-year loans with the total beginning balance of $100 million. The pool backs 97 principal-only (PO) shares and 149
A pool of mortgages contains 3%, 15-year loans with the total beginning balance of $100 million. The pool backs 97 principal-only (PO) shares and 149 interest-only (IO) shares. Monthly expenses and fees amount to 0.05% 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 $708.7 thousand. What was the cash flow per PO share (to the nearest dollar)?
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