Question: Jensen Bank is making a commercial real estate loan on Jackson Apartments with the following data; purchase price of $ 2 0 million, loan to

Jensen Bank is making a commercial real estate loan on Jackson Apartments with the following data; purchase price of $20 million, loan to value ratio of 75%, minimum debt service coverage of 1.1 times, interest rate of 5%, cap rate of 7% and 30-year amortization. Which of the following statements is false? A) the cash-on-cash return in year one is 6.67%. B) the balance of the loan at the end of 120 months is $12,201,309. C) the loan yield is 9.33%. D) the debt coverage ratio is 1.45 times.

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