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Your bank follows the following underwriting standards: LTV of 60% and DSCR of 1.4 Your asset's projected NOI for the next year is $12mi. The
| Your bank follows the following underwriting standards: LTV of 60% and DSCR of 1.4 | |||||||||
| Your asset's projected NOI for the next year is $12mi. The capitalization rate applicable is 8%. | |||||||||
| The bank is willing to issue a fixed rate, fully (quarterly) amortizing loan at an interest rate of 6% which will amortize over 20 years. You will prepay the loan after 5.5 years. In addition to your loan payment, how much will you have to pay to the bank at that time? | |||||||||
| OPTIONS | |||||||||
| a. | CHF 91,287,391 | ||||||||
| b. | CHF 69,514,490 | ||||||||
| c. | CHF 65,882,782 | ||||||||
| d. | CHF 84,764,988 | ||||||||
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Public Finance
Authors: Harvey S Rosen
7th Edition
0072876484, 978-0072876482
