Which of the following is a synonym for "cap rate"?

• A. Yield
• B. Return
• C. Interest Rate
• D. Coupon Rate

Answer: (A)

The main idea being tested is that cap rate is a measure of yield for a real estate investment. It represents the annual net operating income (NOI) as a percentage of the property’s value, so it’s a way to express the return from the property in a simple, annualized form if you bought it with cash and NOI stayed steady.

Why the best answer fits: yield is the standard synonym for the rate of return earned on an investment, expressed as a yearly percentage of value or price. Cap rate gives that same flavor of annual return relative to price, which is why it’s described as a yield metric in real estate.

Why the others don’t fit as synonyms:

• Return is a broader term and can refer to various measures of profit or performance (cash-on-cash, IRR, total return, etc.), not the specific income‑to‑price ratio that cap rate represents.

• Interest rate is the cost of borrowing money, not the property’s return from its operations.

• Coupon rate is a bond term referring to payments as a percentage of face value, not a real estate metric.