A two-year, $10,000 loan carries a market interest rate and a coupon rate of 11%. The loan requires payment of accrued interest and one-half of the principal at the end of one year. The remaining principal and accrued interest are due at the end of the second year.

What is the cash flow at the end of first year?

What is the present value of this loan? Assume "present" is the beginning of the loan.