Archives: Solution Manual
978-1259919688 Chapter 23
Solutions to Questions – Chapter 23 Real Estate Investment Funds: S tructure , P erformance , Benchmarking, and Attribution Analysis Question 23-1 What are the primary differences between an open-end and closed-end fund? Why would an investor choose to invest […]
978-1259919688 Chapter 22
Solutions to Questions – Chapter 22 Real Estate Investment Performance and Portfolio Considerations Question 22-1 What are some of the difficulties of obtaining data to measure real estate investment performance? It is difficult obtaining data to measure real estate investment […]
978-1259919688 Chapter 21
Chapter 21—Real Estate Investment Trusts (REITs) Solutions to Questions—Chapter 21 Real Estate Investment Trusts (REITs) Question 21-1 What are the general requirements regarding income, investments, and dividends with which a REIT must comply to maintain its qualification to be taxed […]
978-1259919688 Chapter 20
Solution to Questions – Chapter 20 The Secondary Mortgage Market: CMOs and Derivative Securities Question 20-1 What is a mortgage pay-through bond (MPTB)? How does it resemble a mortgage-backed bond (MBB)? How does it differ? MPTBs are issued against mortgage […]
978-1259919688 Chapter 19
Solutions to Questions – Chapter 19 The Secondary Mortgage Market: Pass-Through Securities Question 19-1 What is the secondary mortgage market? List three reasons why it is important. The secondary mortgage market is the “after” market in which mortgages are sold […]
978-1259919688 Chapter 18
Solutions to Questions – Chapter 18 Structuring Real Estate Investments: Organizational Forms and Joint Ventures Question 18-1 What is the difference between an IRR preference and an IRR lookback? With an IRR preference the investor receives all additional cash flow […]
978-1259919688 Chapter 17
Solutions to Questions – Chapter 17 Financing Land Development Projects Question 17-1 How might land development activities be specialized? Why is this activity different from project development discussed in the preceding chapter? Firms can specialize in the acquiring raw land […]
978-1259919688 Chapter 16
Solutions to Questions – Chapter 16 Financing Project Development Question 16-1 What are the sources of risk associated with project development? Sources of risk associated with project development include market risks and project risks. Market risks are the result of […]
978-1259919688 Chapter 15
Solutions to Questions – Chapter 15 Financing Corporate Real Estate Question 15-1 What are the main reasons that corporations may choose to own real estate? There are a number of reasons a corporation may decide to own (rather than lease) […]
978-1259919688 Chapter 14
14-1 Solutions to Questions – Chapter 14 Disposition and Renovation of Income Properties Question 14-1 What factors should an investor consider when trying to decide whether to dispose of a property that he has owned for several years? Question 14-2 […]
978-1259919688 Chapter 13
Solutions to Questions – Chapter 13 Risk Analysis Question 13-1 What is meant by partitioning the internal rate of return? Why is this procedure meaningful? To illustrate what is meant by partitioning the IRR, remember that the IRR is made […]
978-1259919688 Chapter 12 Part 2
Year 1 2 3 4 5 NOI 475,000 489,250 503,928 519,045 534,617 Debt Service 0 0 0 0 0 Before-tax Cash Flow 475,000 489,250 503,928 519,045 534,617 Equity Participation 0 0 0 0 0 Cash Flow after Participation 475,000 489,250 […]
978-1259919688 Chapter 12 Part 1
Solutions to Questions – Chapter 12 Financial Leverage and Financing Alternatives Question 12-1 What is financial leverage? Why is a one-year measure of return on investment inadequate in determining whether positive or negative financial leverage exists? Financial leverage is defined […]
978-1259919688 Chapter 11
(4) styles: Core, Core Plus, Value Added, Opportunistic Under Core: Office Properties Trophy Properties Gateway Markets Under Core Plus: Properties to be re-tenanted Properties needing minor capital improvements Properties to be leveraged Under Value Added: Properties with excess land to […]
978-1259919688 Chapter 10
Solution to Questions – Chapter 10 Valuation of Income Properties: Appraisal and the Market for Capital Question 10-1 What is the economic rationale for the cost approach? Under what conditions would the cost approach tend to give the best value […]
978-1259919688 Chapter 9
Solutions to Questions – Chapter 9 Income-Producing Properties: Leases, Rents, and the Market for Space Question 9-1 How does the use of leases shift the risk of rising operating expenses from lessor to the lessee? Leases determine how much risk […]
978-1259919688 Chapter 8
Solution to Questions – Chapter 8 Underwriting and Financing Residential Properties Question 8-1 What is the legislative intent of federal truth-in-lending disclosures, and what specific disclosures are required under the act? The intent of FTL legislation is to require that […]
978-1259919688 Chapter 7
Solutions to Questions – Chapter 7 Single Family Housing: Pricing, Investment and Tax Considerations Question 7-1 Why is the income approach to value often difficult to use on a single family residential appraisal? Typically, the income approach is difficult to […]
978-1259919688 Chapter 6
Solutions to Questions – Chapter 6 Mortgages: Additional Concepts, Analysis, and Applications Question 6-1 What are the primary considerations that should be made when refinancing? The borrower must determine whether to present value of the savings in monthly payments is […]
978-1259919688 Chapter 5
Solutions to Questions – Chapter 5 Adjustable and Floating Rate Mortgage Loans Question 5-1 In the previous chapter, significant problems regarding the ability of borrowers to meet mortgage payments and the evolution of fixed interest rate mortgages with various payment […]
978-1259919688 Chapter 4 Part 2
(d) Include prepayment penalty of 2% of $83,186.41 or $1,663.73 Solution i: PV = $-84,000 PMT = $642.04 n = 60 FV = $84,850.14 i = 9.33% effective rate Problem 4-15 Points required to achieve a yield to 10% for […]
978-1259919688 Chapter 4 Part 1
Solutions to Questions – Chapter 4 Fixed Interest Rate Mortgage Loans Question 4-1 What are the major differences between the CAM, and CPM loans? What are the advantages to borrowers and risks to lenders for each? What elements do each […]
978-1259919688 Chapter 3
Solutions to Questions – Chapter 3 Mortgage Loan Foundations: The Time Value of Money Question 3-1 What is the essential concept in understanding compound interest? The concept of earning interest on interest is the essential idea that must be understood […]
978-1259919688 Chapter 2
Solutions to Questions – Chapter 2 Real Estate Financing: Notes and Mortgages Question 2-1 Distinguish between a mortgage and a note. A note admits the debt and generally makes the borrower personally liable for the obligation. A mortgage is usually […]
978-1259919688 Chapter 1
Solutions to Questions – Chapter 1 Real Estate Investment: Basic Legal Concepts Question 1-1 What is the difference between real property and personal property? Real property refers to the ownership rights associated with realty. Realty refers to land and all […]
978-1259447099 Chapter 28
180 CHAPTER 28 New Directions This final chapter introduces the student to a wide range of topics: explorations of texture, timbre, and tuning; indeterminacy; minimalism; and electronic and computer music. Most of these topics contain sub–topics that acquaint the student […]
978-1259447099 Chapter 27
166 CHAPTER 27 Post-Tonal Theory In this chapter the student is introduced to the elements of post–tonal theory, from pitch–class sets to integral serialism. While some students will be intrigued by the mathematical logic involved in the manipulation of pitch– […]
978-1259447099 Chapter 26
155 CHAPTER 26 Materials and Techniques Most twentieth–century composers departed radically from the music of the past. Gone is the great tonal tradition, the harmonic practice that provided a common ground among composers separated by decades and even centuries, no […]
978-1259447099 Chapter 25
149 CHAPTER 25 Tonal Harmony in the Late Nineteenth Century This chapter describes a number of characteristics of tonal music of the late nineteenth and early twentieth centuries. The analysis of this music is problematic and presents a challenge even […]
978-1259447099 Chapter 24
144 CHAPTER 24 Further Elements of the Harmonic Vocabulary This chapter is concerned with four topics, none of which are at all exotic or exceptional in music of the tonal era: (1) the dominant with a substituted sixth, (2) the […]
978-1259447099 Chapter 23
138 CHAPTER 23 Enharmonic Spellings and Enharmonic Modulations The topic of enharmonicism may be dear to the hearts of many instructors, but to some students it is a difficult hurdle, the one complication too many piled onto the harmonic stack. […]
978-1259447099 Chapter 22
131 CHAPTER 22 Augmented Sixth Chords When introducing augmented sixth chords, we take as our starting point the interval of the augmented sixth from which the chord gets its name, demonstrating that it is the result of two “leading tones” […]
978-1259447099 Chapter 21
126 CHAPTER 21 Mode Mixture and the Neapolitan Because we view § and ¶ in minor as variable scale degrees, we do not categorize IV, v, and VII in minor as examples of mode mixture. In fact, the major tonic […]
978-1259447099 Chapter 20
119 CHAPTER 20 Larger Forms This chapter continues the study of musical forms that was begun in Chapter 10, where phases, periods, and the sentence were introduced. Here we discuss binary and ternary forms, sonata form, and the rondo. Binary […]
978-1259447099 Chapter 19
113 CHAPTER 19 Some Other Modulatory Techniques This chapter continues the discussion of modulatory techniques begun in Chapter 18. While perhaps not exhausting the possibilities, these two chapters, along with the modulations discussed in Chapters 21 and 23, certainly account […]
978-1259447099 Chapter 18
104 CHAPTER 18 Modulations Using Diatonic Common Chords Modulation is an extension to a deeper level of the tonicizing secondary function, although the distinction between the two frequently cannot be clearly defined. This chapter begins the discussion of modulation by […]
978-1259447099 Chapter 17
95 CHAPTER 17 Secondary Functions 2 The unit on secondary functions continues with a discussion of secondary leading–tone chords, this part of the chapter paralleling the approach used in Chapter 16. Intensive chord spelling and recognition drills should be continued […]
978-1259447099 Chapter 16
85 CHAPTER 16 Secondary Functions 1 We begin the study of chromaticism with a chapter on the secondary V and V7 chords. Our approach is first to treat the spelling and recognition of these chords in the abstract, after which […]
978-1259447099 Chapter 15
79 CHAPTER 15 Other Diatonic Seventh Chords The unit on diatonic seventh chords concludes with this chapter devoted to all of the diatonic seventh chords other than the V7. The most commonly encountered of these are the ii7 (iiø7) and […]
978-1259447099 Chapter 14
70 CHAPTER 14 The V7 Chord Most theory instructors will probably agree that the resolution of the root position V7 is the most challenging partwriting problem that the student will face in the study of tonal harmony. This might come […]
978-1259447099 Chapter 13
64 CHAPTER 13 Non-Chord Tones 2 This chapter explains appoggiaturas, escape tones, the neighbor group, anticipations, and the pedal point. This is followed by a brief discussion of some problems that can arise in analysis. Unfortunately, practice at aural identification […]
978-1259447099 Chapter 12
58 CHAPTER 12 Non-Chord Tones 1 The student will be familiar by this time with the concept of the non–chord tone from many of the examples in preceding chapters. What remains is to categorize them, which we do by means […]
978-1259447099 Chapter 11
54 CHAPTER 11 Two-Part Tonal Counterpoint The introduction to soprano/bass counterpoint included in Chapter 8 is expanded here to provide more detail and context for students practicing the composition of musically sensitive outer–voice textures. Our approach combines elements of traditional […]
978-1259447099 Chapter 10
48 CHAPTER 10 Cadences, Phrases, Periods, and Sentences This chapter introduces the student to formal analysis. The emphasis here is on the phrase and on small structures that combine phrases, in contrast to the details of harmony and voice leading […]
978-1259447099 Chapter 9
44 CHAPTER 9 Triads in Second Inversion Today’s students often have a difficult time accepting the notion that a triad is dissonant (unstable) simply because it occurs in second inversion. We have found it useful at this point to emphasize […]
978-1259447099 Chapter 8
40 CHAPTER 8 Triads in First Inversion Combinations of root position and first inversion triads should result in a much higher degree of musicality in composition exercises. The introduction to soprano/bass counterpoint that is the final portion of the chapter […]
978-1259447099 Chapter 7
37 CHAPTER 7 Harmonic Progression and the Sequence This chapter begins with an introduction to melodic and harmonic sequences, using this topic as a means to explain the norms of tonal harmonic progressions. We take the root movement of the […]
978-1259447099 Chapter 6
32 CHAPTER 6 Root Position Partwriting This chapter deals with partwriting root position triads in four– and three–part textures, presented in that order. Many instructors prefer to restrict their students to four–part textures only, and this may certainly be done […]
978-1259447099 Chapter 5
28 CHAPTER 5 Principles of Voice Leading This chapter serves as an introduction to the composition (partwriting) exercises that begin in Chapter 6. After some guidance in the composition of simple melodies in chorale style, the student learns spacing conventions […]
978-1259447099 Chapter 4
24 CHAPTER 4 Diatonic Chords in Major and Minor Keys This chapter begins by attempting to dispel the notion, so often held by students, that a tonal composer chooses from a menu of three scales before beginning a piece in […]