A firm has borrowed money from one of its stakeholders. In exchange, the firm has agreed to
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Question:
A firm has borrowed money from one of its stakeholders. In exchange, the firm has agreed to pay the stakeholder $19 every six months for ten years (a total of 20 payments) and an additional $1000 at the end of the tenth year.
Using a nominal rate of 4.8%, compounded semiannually, to discount the cash flows, how much money did the firm borrow?
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