What is the effective rent for seven-year net lease

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1. A certain mortgage pool has $900 million in par value. The senior (“A”) tranche has 30% credit support, and the next level (“B”) has 20% credit support. How much par value was issued in the B tranche? Question options:

$80 million

$85 million

$90 million

$95 million

2. What is the Effective Rent (under 10% discount rate assumption) for a 7-year net lease with rent fixed at $22/SF, in which the landlord agrees to give the tenant one year free rent up front and to pay for $10/SF worth of tenant improvements?

$14.40

$16.03

$16.26

$16.15

Reference no: EM131361415

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