2. Real Estate Finance
Capital Markets — Quiz
Test your understanding of capital markets with 5 practice questions.
Practice Questions
Question 1
Which statement best describes a mortgage REIT?
Question 2
What distinguishes conduit CMBS from single-asset single-borrower (SASB) CMBS?
Question 3
What is a typical lock-up period for investors in private equity real estate funds?
Question 4
A mortgage REIT borrows at a cost of funds of 4.5\\% and invests in CMBS yielding 6.8\\%. What is the net interest spread?
Question 5
If the 10-year Treasury yield is 3.2\\% and the credit spread widens from 2.1\\% to 3.1\\%, what is the new cap rate assuming cap rate = Treasury yield + spread?