FIN 3334 Exam 2 Fall 2008 Answers by 5bcY1j3

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```									                                        Exam #2
Texas Tech University
FIN 3334: Real Estate Finance
Professor Harrison
Fall 2008

Section #1 – Core Concepts and Short Problems (4 points each): Answer the following questions
by providing the appropriate number, term, equation, or phrase. Be sure to place your final
answer in the space provided to the left of each question.

1. \$201.73
2. 8.1024 years
3. 10.7240 years
4. \$1,398.43
5. \$1,535.26
6. 9.60%
7. \$477.42; \$496.51; \$511.41
8. 8.02%
9. 57.14%
10. \$276,248.51
11. \$186,036.78
12. \$31,208.00
13. \$981.86
14. \$33.50
15. Pf=\$500,000; Pif=\$317,429.09

Section #3 – Identification and Extended Problems:

1.   4; 36; (1.1250); 3,888; 3,200,000
2.   \$600/share; \$25,778,737.66
3.   Mac. Dur. = 2.8101 years; Mod. Dur. = 2.5547 years
4.   \$23,375.37
5.   Cash Equivalent Value; Teaser Rate; Margin; Disintermediation; Buydown; Mortgage
Revenue Bond; Negative Amortization; “Tilt” Effect; Forbearance; Duration
6.   \$606.79; 85.26%; \$14,614.92; \$203.31; \$538.80
7.   7.84%
8.   7.83%
9.   False; True; False; True; <
10. Escrow; Joint & Several Liability; Acceleration Clause; “Due-on-Sale” Clause;
Exculpatory Clause

Extra Credit (2 points)
If a crab and a half weigh a pound and a half, but the half crab weighs half as much again as the
whole crab, what do half the whole crab and the whole of the half crab weigh?