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Hard Spun Industries (HSI) has a project that it expects will produce a cash flow of $2.9 million in 10 years. To finance the project,

Hard Spun Industries (HSI) has a project that it expects will produce a cash flow of $2.9 million in 10 years. To finance the project, the company needs to borrow $1.7 million today. The project will also produce intermediate cash flows of $170,000 per year that HSI can use to service coupon payments of $85,000 every six months. Based on the risk of this investment, market participants will require a 11.0% yield. If HSI wishes a maturity of 10 years (matching the arrival of the lump sum cash flow), what does the face value of the bond have to be? Recall that the compounding interval is 6 months and the YTM, like all interest rates, is reported on an annualized basis. (Enter just the number in dollars without the $ sign or a comma and round off decimals to the closest integer, i.e., rounding $30.49 down to $30 and rounding $30.50 up to $31.)

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