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Your firm is in the 34 percent tax bracket. The yield to maturity on your existing bonds is 8 percent. The state of Georgia offers

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Your firm is in the 34 percent tax bracket. The yield to maturity on your existing bonds is 8 percent. The state of Georgia offers to loan your firm $1,000,000 with a two year amortizing loan at a 5 percent rate of interest and annual payments due at the end of the year. The interest will be deductible at the time that you pay. What is the APV of this below-market loan to your firm? I did not round any of my intermediate steps. You might be a little bit off. Pick the answer closest to yours. $64,157,38$417,201.05$840,797 none of the options

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