Assume a property produces a level NOI of $75,000 per year. The property value is expected to increase by a total of 12 percent over a 4 year holding period. A 10 percent discount rate is considered appropriate. What is the indicated property value? Please show all work.
A. $1,012,146
?B. $ 595,917
?C. $1,001,443
?D. $ 599,482
2. You purchase a $16,000 4.250% Treasury bond maturing October 23, 2043. The bond is priced to yield 10.125% and settles February 16, 2017.
The base price of the bond is ________
Accrued Interest adds ________
The invoice price is thus ________