You are considering investing in Property B in question $4.$ Consider now that the listing price

of the property is $$11$ million. You know that the historical annual returns on this type of

property has been $10\%,$ and the historical risk premium on this type of property has been

$5\mathrm{.}5\%.$ The prices of zero coupon Treasury Bonds are as follows:

Prices of zero coupon treasury bonds $($denomination $=$$$1,000)$

How much is the property worth? Is this a positive NPV investment? ${?}^1$

${?}^1$ Hint: You can calculate the risk free rates at different maturities from the Treasury bond prices; i$.$e$.,$

$P_t=\frac{1000}{(1+r{f}_t{)}^t}.$