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RedSniper
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Joined: May 29th, 2003, 10:51 am

Duration real estate

September 11th, 2006, 7:41 pm

All:A question about duration of real estate. In a rental contract sometimes a fixed rental period is negotiated. What would be the consequence for the duration (interest rate sensitivity) for this particular real estate object using a DCF valuation tool. Can you somehow compare this with the duration of a FRN?