Use the below information to answer the following 3 questions regarding commercial mortgage underwriting Next years projected NOI: $900,000

Interest rate: 6.00%

Term: 10

Amortization: 20

Purchase price: $8,000,000

Down payment: $2,000,000

1. What is the annual debt coverage ratio?

Group of answer choices

2.35

0.86

2.64

1.74

None of these are correct

2. What is the annual debt yield?

Group of answer choices

14.56

13.33

None of these are correct

7.60

15.00

3. What is the LTV?

Group of answer choices

75.00

None of these are correct

83.33

88.83

60.00