Finance
Which of the following is an example of 'yield maintenance' in a commercial mortgage?
AA prepayment penalty designed to make the lender whole if the loan is prepaid✓ Correct
BA guaranteed minimum yield on the property's income
CAn interest rate floor below which the rate cannot fall
DA requirement to maintain minimum occupancy
Explanation
Yield maintenance is a prepayment premium in commercial mortgages that compensates the lender for the lost interest income if the borrower prepays the loan.
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