2. A single-use property is leased absolute net for $200,000 per year for the next ten years to a tenant with an excellent credit rating. The appraiser has applied a terminal capitalization rate to the estimated NOI in year 11 and arrived at an estimated resale price of $2,500,000 when the lease expires at the end of year 10. Based on the yield currently quoted for the tenant's corporate bonds, the appraiser believes that if the income stream were discounted separately from the reversion, it would be discounted at a 9 percent rate. Due to uncertainty about the NOI after the lease expires, the appraiser believes the reversion should be discounted at a 12 percent rate. a. What is the value of the property? b. What single discount rate would result in the same value?