200,000, a fast food corporation may purchase the building and land required to open a new shop. Instead, an investor paid this sum for the property and leased it to a tenant for $2,000 per month over the course of 20 years. Each month's rent is due at the end of the month. What is the maturity implied by the lease, assuming that the property is still worth around $200,000 at the end of 20 years? Select the correct response: 8% 10% 12% 14%
200,000, a fast food corporation may purchase the building and land required to open a new shop. Instead, an investor paid this sum for the property and leased it to a tenant for $2,000 per month over the course of 20 years. Each month's rent is due at the end of the month. What is the maturity implied by the lease, assuming that the property is still worth around $200,000 at the end of 20 years? Select the correct response: 8% 10% 12% 14%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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For $200,000, a fast food corporation may purchase the building and land required to open a new shop.
Instead, an investor paid this sum for the property and leased it to a tenant for $2,000 per month over
the course of 20 years. Each month's rent is due at the end of the month. What is the maturity implied
by the lease, assuming that the property is still worth around $200,000 at the end of 20 years?
Select the correct response:
8%
10%
12%
14%
15%
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