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You are about to purchase a $10m apartment building that you anticipate will have a first-year PGI of $515,000, Operating Expenses of $95,000, and an

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You are about to purchase a $10m apartment building that you anticipate will have a first-year PGI of $515,000, Operating Expenses of $95,000, and an NOI of $400,000. You anticipate NOI will increase at 3% per year. What is the 1st year Debt-Yield Ratio (DYR) with a $5 million 10-year interest-only FRM loan at 7% with annual payments? Please represent your answer as a percent (ie, X%)

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