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Your firm's existing bonds trade with a yield to maturity of eight percent. The state of Missouri has offered to loan your firm $ 1
Your firm's existing bonds trade with a yield to maturity of eight percent. The state of Missouri has offered to loan your firm $ at zero percent for five years. Repayment will be of the form of $ per year for five years; the first payment is due in one year.
What is the value of this offer?
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$
$
$
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