RYERSON UNIVERSITY
Department of Real Estate
REM 400
Problem Set Two
N.B. The first two fundamental concepts discussed in class, on which all modern finance is based, are really
simple  much like elementary finance itself. Each time you buy a good or ser
1
1
CHAPTER 2 FUNDAMENTALS: THE ECONOMICS OF REAL ESTATE
2
David Nickerson and Michael Brooks
3Learning Objectives
4This chapter is the first of several chapters designed to equip students and practitioners with
5fundamental understanding of real estate m
REM Week 2 Notes
Fundamentals in Finance



Goods: income flow varies that separate dates
o An object/service used by others
o Bought/sold everyday
o In financial terms, treasury bills and bonds can be considered goods
o In real estate: mortgage sellin
3.
En
You are a loan ofce at the First Federal eet of Sndenry (FFTS) and wish to o'er an interestonly.
twenty year, nd rate Canadian mortgage with a monthly coupon rate of 28% [28 basis points) to a
prospective home buyer. W'hat would you armoimce to hi
HYEHEON UNIVERSITY
Department of Finance and Real Estate
ELEM 400
Sample Questions Jfor Midterm Bram
Directions: Below appears a random sample of ten questions from a previous midterm exam in REMJW.
These questions are representative of the questions to b
REM 400
Lecture Five
Mortgage Valuation:
Canadian Mortgage Amortization
Summary Outline of Lecture 5
American & Canadian Mortgage Rate Expressions
Selected Definitions Useful in Amortization Calculations
Amortization: the Fundamentals
Mortgage Amortizatio
REM 400
Lecture Four
Valuing Bonds & Mortgages: Two Approaches to
Discounting
Summary Outline of Lecture 4
Significance of Lecture 4
Valuation with Constant and Market Rates
o
o
Pricing a future coupon payment: a numerical example
o
Current discounted val
REM 400
Lecture One
Finance and Real Estate Finance: Introductory
Concepts
Lecture outline
Course: organization, topics and grades
Some definitions and concepts in finance and in real
estate finance:
What is a financial asset? What is a real asset?
What
REM 400
Lecture Three
Defining Market Interest and Discount Rates as Simple
Prices
Outline of Lecture 3
Asset Types in Real Estate Finance
o
Debt, equity & options
o
Bonds and mortgages: coupon and zerocoupon forms
Asset Prices in Real Estate Finance
Pri
REM 400
Lecture Two
Fundamental Concepts in Mortgage Valuation
Fundamental Concepts:
Outline of Lecture 2
Explanation of why this lecture is important and
why were spending time on it
Statement of the three fundamental concepts in
finance
Exploring eac
The Promise of NeuroRecovery After Stroke
Cell Therapies
Careful Translation From Animals to Patients
Sean I. Savitz, MD
Therapeutic Phases of Stroke: Where do Cell
Therapies Theoretically Fit?
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ORIGINAL ARTICLE
Global Epidemiology of Pediatric Severe Sepsis: The Sepsis
Prevalence, Outcomes, and Therapies Study
Scott L. Weiss1*, Julie C. Fitzgerald1*, John Pappachan2,3, Derek Wheeler4,5, Juan C. JaramilloBustamante6,
Asma Salloo7,
RYERSON UNIVERSITY
Department of Finance and Real Estate
REM 400
Sample Questions for Midterm Exam
Directions: Below appears a random sample of ten questions from a previous midterm exam in REM400.
These questions are representative of the questions to be
REM 400
Lecture 6
Mortgage Risk I: Interest Rate and Prepayment Risk
Summary Outline of Presentation 3
Risk & Uncertainty in Finance
Risk in Real Estate (Mortgage) Finance
Interest Rate Risk in Mortgages
How does interest rate risk work?
The term structur
REM 400
Lecture Eight
Valuing Real Assets: Part 2 Practitioner Methods
Summary Outline of Lecture 8
Significance of Lecture 8
o
o
Practitioner concepts: two vital tools to measure net revenues
o
NER (Net effective rent)
o
Pro forma for development project
REM 400
Lecture Seven
Valuing Real Assets: Part 1 Income Producing
Properties
Summary Outline of Lecture 7
Significance of Lecture 7:
Valuation of Real Assets
Valuation: Financial assets to real assets
Finance & real estate finance: theory and practice
E
RYERSON UNIVERSITY
REM 400
Real Estate Finance
Answers to Graded Assignment One
1.
a.
In period 1: the market discount rate is .9950, and the respective gross and net forms of the
market interest rate are 1.0050 and .5%
In period 3, the market discount ra
RYERSON UNIVERSITY
Department of Real Estate
REM 400
SAMPLE FINAL EXAM
Directions: The sample exam below consists of ten multiple choice questions, each worth five points. Each question has
a single correct answer. All numerical answers are approximate. A
REM 400 Midterm Review
Same as sample exam
Know chapter 1 & 2
o Know terms that are related to real estate financial transactions
What a mortgage is
Bankruptcy & foreclosure
Senior lender gets paid first, he is the priority, if theres any left
over,
RYERSON UNIVERSITY
Department of Real Estate
REM 400
M
idter m E xam Official Cheat Sheet
(Course Notation and Technical Expressions)
P ar t I . Cour se N otation
Denot ing Time
0 = today (the current date or period for income flows)
T = maturity date (t
Rem 400 Midterm
Lecture 2
Three Fundamental Concepts in Finance
Goods in finance: Income flows at different dates are different goods
Prices in finance: an interest rate is the price of a dollar of income today measured in
dollars received or paid at fut
REM400
Amortization Schedules and Calculations for C
(CAM), and constant payment (CPM.) You must input the parameter values, indicated by blue font, in eac
commands programmed into the spreadsheet. Each spreadsheet has the 300 cell capacity sufficient for
RYERSON UNIVERSITY
Department of Real Estate
REM 400
Supplemental Problem Set Three
N B : T he se thre e pro ble ms a re impo rta nt fo r fo ur re a so ns. F irst, e a c h illustra te s the a pplic a tio n o f the no a rbitra g e
pric ing a ssumptio n in
RYERSON UNIVERSITY
Department of Real Estate
REM 400
2016 F all
Supplemental Problem Set Three
Answers and Hints1
1.
a. Remember: an interest rate is the value of a dollar today and a discount rate is the value of a
dollar at a specified future date. You
RYERSON UNIVERSITY
Department of Real Estate
REM 400
Problem Set Six
Mortgage Amortization
1. You are in your final interview for employment as a loan officer with Royal Bank (RB), and are asked
to answer two simple problems:
a. Calculate the monthly coup
RYERSON UNIVERSITY
Department of Real Estate
REM 400
Supplementary Lecture Notes Five
Mortgage Amortization and Valuation
Part I. Amortization Patterns in Mortgages and Other Bonds
I.0. Simple Algebra of DCF Valuation
I.1. Amortization: a General Definiti
RYERSON UNIVERSITY
Department of Real Estate
REM 400
(2015 Fall T e r m)
Lecture Two: Supplemental Notes
Th r e e E s s e n t ia l Co n c e p t s in R e a l E s t a t e Fin a n c e
Part I. Three Essential Concepts
I.1. A Pedagogical Digression
I.2 Goods