Unlike the Debt Coverage Ratio, the Debt Yield Ratio (DYR)

question 10

Multiple Choice

Unlike the debt coverage ratio, the debt yield ratio (DYR) is not affected by the interest rate or amortization period of the loan; the DYR is simply a measure of how large the NOI is relative to the loan amount. Lenders who rely on this ratio are typically willing to accept a minimum DYR of

• A) 10%
• B) 20%
• C) 60%
• D) 80%

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Definitions:

Inorganic Source

A source of material or substance that is not derived from living organisms.

Sugars

Sweet-tasting, soluble carbohydrates that are important as energy sources in living organisms and as sweeteners in the diet.

Molecular Reactants

Substances initially present in a chemical reaction that interact to form products, involving the breaking and forming of chemical bonds.

Photosynthesis

The process by which green plants, algae, and some bacteria convert light energy, usually from the sun, into chemical energy stored in glucose.