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Question
LOAN 1 |
LOAN 2 |
LOAN 3 |
LOAN 4 |
|
| Initial Interest Rate | ? | ? | ? | ? |
| Loan Maturity (years) | 20 | 20 | 20 | 20 |
| % Margin Above Index | 3% | --- | 3% | 3% |
| Adjustment Interval | 1 yr. | --- | 1 yr. | 1 yr. |
| Points | 1% | 1% | 1% | 1% |
| Interest Rate Cap | NONE | ---- | 1%/yr. | 3%/yr. |
Which loan in the above table should have the lowest initial interest rate?
(A) Loan 1
(B) Loan 2
(C) Loan 3
(D) Loan 4
Answer
This answer is hidden. It contains 1 characters.
Related questions
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A REIT has an NOI of $15 as share and currently pays a dividend of $10 a share. The dividend is projected to increase by 4percent by next year and continue to increase by 4percent per year thereafter. Assuming that the blended cap rate is 9.75percent and the required rate of return is 10.5percent, what value would the Gordon Dividend Discount Model provide?
(a) $60.15
(b) $71.89
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Duration, as referred to in this chapter, is defined as:
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(B) A measure of the weighted-average time required before all principal and interest is received on an investment
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Q:
If sold today
If sold next year Sale price
$2,500,000
$2,650,000 Mortgage balance
1,000,000
900,000 Capital gain tax
112,500
135,000 Cash flow
$1,387,500
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Q:
Generally, which of the following is FALSE regarding interest rate risk management techniques?
(A) Borrowers can protect themselves from upward movements in interest rates by using interest rate caps
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Q:
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In the context of a lease, percentage rents generally indicate that:
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Q:
Mini-perm loans usually refer to financing:
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Q:
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Q:
Which of the following is NOT a component of lease rollover risk?
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Q:
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Which of the following is also referred to as a negative amortization loan?
(A) Participation loan
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Q:
All other things being equal, which of the following best describes the effects of leverage on an investment's risk-return characteristics (assuming the expected return is greater than the lending rate)?
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(b) Lower expected return, higher risk
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Q:
Under which conditions would one be MOST LIKELY to see an interest rate swap?
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Q:
The real estate industry:
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(e) None of the above