$6.$ Jessica comes to you seeking advice on whether she should buy a property that just hit the market. The list price is $$1\mathrm{.}2$ million. She has talked to the real estate agent and has the following information. The building has four apartments that rent for $$3,000$ a month each. Usually one of the apartments is open due to vacancy. The total basic upkeep and maintenance cost is about $$20,000$ per year. Jessica will pay all cash. What is the net operating income $($NOI$)$ and what price should Jessica pay based on a $6\mathrm{.}5\%$ capitalization rate?

NOI $=$ $$88,000$; Value $=$ $$135,384$

NOI $=108,000$; Value $=$ $$1,661,538$

NOI $=$ $$88,000$; Value $=$ $$1,353,846$

NOI $=$ $$124,000$; Value $=$ $$190,769$

$7.$ Calculate the yield to maturity of the following bond: $$1,000$ par with a coupon of $6\%$ and maturity of $10$ years that is currently trading at $$962.$

$6\mathrm{.}91\%$

$3\mathrm{.}26\%$

$6\mathrm{.}52\%$

$6\mathrm{.}34\%$

$8.$ Brody wants to buy the following bond: $$1,000$ par with a coupon of $3\%$ and maturity of $15$ years. Comparable bonds are paying $6\%$ currently. What is the value of this bond?

$$1,305\mathrm{.}98$

$$705\mathrm{.}99$

$$1,000$

$$820\mathrm{.}93$