why the traditional approach to estimating a financing premium may estimate the financing premium on the high?

Question

A.The holding period may be longer than the loan amortization period.
B.The purchaser may value the premium based on a mortgage yield rate rather than the overall market rate.
C.The investor’s holding period may be less than the loan amortization period and the investor may value the premium based on an equity yield rate.
D.The investor’s expected loan-to-value ratio may be higher than typical

Answer 1

This is a total guess but i'm going to say B.