Assume a bank is in the process of considering restructuring a $4 million loan. The original loan is due in 1 year, pays an interest rate of 7% and the cost of funds is also 7%. For this loan there is a 10% chance of no recovery on default, 20% chance of $2 million recovery, and 70% chance the loan pays as planned. What is the present value of the existing loan? If the bank restructures the loan, the terms of the restructuring terms are as follows: Loan payments will be stretched to 5 years. Interest rate will be reduced to 5% for the next 5 years. Principal payment of $1,000,000 in year 3 and principal payments of $1,500,000 in years 4 to 5. No upfront fee. The cost of funds for the bank increases to 10% since the risk of the loan increases after restructuring What would be the present value of the restricted loan?