A propertys finance is structured as follows:

Loan to Value Ratio

70%

Annual Loan Rate

5.50%

Amortization Term

30 Years

Amortization Frequency

Monthly

Equity Dividend Yield

10%

1)

Compute the Debt Service Constant.

2)

Compute the Overall Capitalization Rate.PAGE 2

3)

If the Overall Capitalization Rate becomes 9.00% and the Loan to Value Ratio

and Debt Service Constant do not change, what is the Equity Dividend Yield?

4)

If the Equity Dividend Yield remains at 10% and the Loan to Value Ratio at

70%, what is the Annual Interest Rate for the loan if the Overall Capitalization

Rate changes to 9.00%?