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ECB borrows $ 1 0 0 0 0 0 0 USDs by issuing 5 - year bonds. ECB's cost of debt is 4 % ,

"ECB borrows $1000000 USDs by issuing 5-year bonds. ECB's cost of debt is 4%, so it will need to pay $40000 USDs in interest each year for the next 5 years, and then repay the principal $1000000 USD in year 5. ECB's marginal tax rate will remain 35 throughout this period. By how much (in USDs) does the interest tax shield increase the value of ECB? Note: Express your answers in strictly numerical terms. For example, if the answer is $500, enter 500 as an answer."

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