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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 $10,000,000 at zero

ch18#16. I need the answer by tonight. Pls inform if unable to do so. Thanks

Your firm's existing bonds trade with a yield to maturity of eight percent. The state of Missouri has offered to loan your firm  $10,000,000 at zero percent for five years. Repayment will be of the form of $2,000,000 per year for five years the first  payment is due in one year. What is the value of this offer? Feedback I was provided: Using a financial calculator: N = 5; I/Y = 8% PMT = -$2,000,000 solve for PV =  $7,985,420.07 The state is giving you $10,000,000 for a promise that's worth only $7,985,420.07. The value of that is $2,014,579.93 Ans: $2,014,579.93 Since I don’t have a financial, can you pls show all work/steps?
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