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Calculate the loan to value for each tranche of debt, given the information below: Value of the building is $1.0 billion Mortgage Debt A1 of

  1. Calculate the loan to value for each tranche of debt, given the information below:
  2. Value of the building is $1.0 billion
  3. Mortgage Debt A1 of $300 million (pari-passu with A2)
  4. Mortgage Debt A1 of $200 million (pari-passu with A1)
  5. Senior Mezzanine Debt of $150 million
  6. Junior Mezzanine Debt of $100 million
    1. Mortgage Debt A1 (30.0%), Mortgage Debt A2 (20.0%), Senior Mezzanine Debt (15.0%), Junior Mezzanine Debt (10.0%)

  1. Mortgage Debt A1 (50.0%), Mortgage Debt A2 (50.0%), Senior Mezzanine Debt (65.0%), Junior Mezzanine Debt (75.0%)
  2. Mortgage Debt A1 (30.0%), Mortgage Debt A2 (50.0%), Senior Mezzanine Debt (65.0%), Junior Mezzanine Debt (75.0%)
  3. Mortgage Debt A1 (30.0%), Mortgage Debt A2 (50.0%), Senior Mezzanine Debt (75.0%), Junior Mezzanine Debt (75.0%)

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Introduction Loantovalue LTV ratio is a financial metric used to assess the risk of lending money against a particular asset It represents the ratio of the loan amount to the appraised value of the as... blur-text-image

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