1. A property produces a net operating income of $20,000 in year 1, $30,000 in year 2, and $45,000 in years 3 to 6. The resale price is estimated using a terminal capitalization rate of 8.5% applied to the sixth year NOI. What is the value of the property using a 10.5% discount rate?

A) $502,634

B) $424,337

C) $468,892

D) $454,872

2. A bond with a coupon rate of 6 percent that pays interest semiannually and is priced at par will have a market price of _____ and interest payments in the amount of _____ each.

$1,006; $60

$1,006; $60

$1,000; $30

$1,060; $60

$1,060; $30

$1,000; $60

Which option?