QUESTION 5 Ann wants to buy an office building which costs $1,000,000. She obtains a 30 year fully amortizing fixed rate mortgage with 80% LTV, an annual interest rate of 4%, with monthly compounding and monthly payments. The mortgage has a 2% prepayment penalty if the borrower prepays in the first 5 years. Suppose Ann makes the required monthly payment for 3 years and prepays after her final monthly payment at the end of 3 years. What is the annualized IRR on Ann's mortgage? 4.60% 5.73% 0.38% 4.00% QUESTION 6 In which of the following lease types is the tenant responsible for rent, property taxes and insurance? Gross lease Triple net lease Double net lease Single net lease