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g.The difference in the remaining mortgage balances at the end of year 7 (four years after refinancing) is as follows: The balance at year seven for
13h.At the end of year 3 (beginning of year 4), the present value of the differences in monthly payments in years 4-7, discounting at an annual rate of 4.5 percent, is $19,017 (n = 48, I = 4.5/12, PMT= 433.65, and FV = 0).
146.Consider the stand-alone locations favored by Walgreens for locating their drugstores. In most cases, Walgreens does not own these properties. Instead, they lease the properties on a long-term basis from institutional owners. What does Walgreens gain by leasing instead of owning? What do they lose?
157.Consider the following table of annual mortgage rates and yields on 10-year Treasury securities. a.What is the average annual spread on mortgage rates relative to the 10-year Treasury securities? b.What is the correlation between annual mortgage rates and Treasury yields over the 1990-2005 period? Solution:
168.List and briefly describe the typical items included in a commercial mortgage loan application package.