1. A 20-year security has a price of $966.53. The security pays $50 at the end of each of the next 5 years, $100 at the end of years 6-10, and then it pays a different fixed cash flow amount at the end of each of the following 5 years (i.e., years 11-15). Finally, in years 16-20 it again pays$100 per year at year end. Interest rates are 6.0%. What is the annual cash flow amount between years 11 and 15?

2. Consider a commercial property currently in the final stages of development. You expect the 175,000 square foot building to be ready for occupancy in one year. The first lease is expected to be signed in one years, require payments of $11 per square foot, and will require rents to be paid annually (in advance). Leases will be for 5 years with a fixed (intra-lease) rent. Expected rental growth between leases is 4% per year, with no vacancies expected in between leases. Suppose the intra-lease (low-risk) discount rate is 6% per year, while the inter-lease (high risk) discount rate is 12% per year. What should be the price (expected present value) of this space?