Finance
What is the 'debt yield' metric in Delaware commercial real estate lending?
AThe annual return on a real estate debt investment
BNOI divided by the loan amount, measuring the lender's return on investment and the loan's risk from the lender's perspective✓ Correct
CThe yield on government bonds used to set commercial mortgage rates
DThe spread between the mortgage rate and the cap rate
Explanation
Debt yield = NOI ÷ Loan Amount. It measures how quickly the lender could recoup their loan from the property's income if they took possession.
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