Please no CHATGPT or AI to solve this.

Assume that you have a closed$-$end fund that invests in average risk stocks. Assume also that you expect the market $($average risk investments$)$ to make $11\mathrm{.}5\%$ annually over the long term. If the closed end fund underperforms the market by $0\mathrm{.}50\%$ and there is a growth rate of $4\%$ in the fund in perpetuity, estimate the discount on the fund.

A$.\%6\mathrm{.}93$

B$.\%6\mathrm{.}06$

C$.\%5\mathrm{.}74$

D$.\%5\mathrm{.}21$