1. Suppose the market yield on mortgages is 9.0% in bond equivalent terms (BEY, or "coupon equivalent", CEY). For the situation described in the problem above (i.e., where the BEY is 9.0%), what is the "mortgage equivalent" yield, or the "nominal" annual rate (ENAR) with monthly payments on the loan?
0.75%
8.84%
9.00%
9.38%
2. The minimum lenders typically require for a DCR in office buildings is:
0.8
1.0
1.2
1.5