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Delos Debt Renegotiations ( A ) . Delos borrowed euro 8 0 million two years ago. The loan agreement, an amortizing loan, was for six
Delos Debt RenegotiationsA Delos borrowed euro million two years ago. The loan agreement, an amortizing loan, was for six years at interest per annum. Delos has successfully completed two years of debtservice, but now wishes to renegotiate the terms of the loan with the lender to reduce its annual payments.
a What were Delos's annual principal and interest payments under the original loan agreement?
b After two years debt service, how much of the principal is still outstanding?
c If the loan were restructured to extend another two years, what would be the annual paymentslong dashprincipal and interest? Is this a significant reduction from the original agreement's annual payments?
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