The Nigerian government now owes $20 million in outstanding loans to a bank. After negotiations, the bank agreed to cut the interest rate from 10 percent to 6 percent and extend the term from five to 10 years. The principal of the loan is repaid when it matures. There is no grace period and the first interest is paid at the end of the year.

 (1) If the bank's funding cost is 5%, what is the present value of the loan before restructuring?

(2). What is the present value of the restructured loan to the bank?

(3). If the financing cost remains unchanged and the front-end fee charged =5%, what is the transferee amount of the restructured loan?

(4). How much front-end fee should the bank charge if the concession value is 0?