Question: From the table below which you will fill up, explain the differences in cash flows and explain the difference in payback of the loan compared

From the table below which you will fill up, explain the differences in cash flows and explain the difference in payback of the loan compared to a $1 million revenue bond with a coupon rate of 5%. Both have terms of 10 years.

Year Loan Payment Loan balance remaining Bond payment Bond balance remaining
0 1,000,000 1,000,000
1
2

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