Assume that Akshaya Bank has a loan with a principal amount of USD 100 million outstanding to Brazil, due 6 months from now, and the loan has a present value of USD 100.51 million. Brazil declares its inability to meet its payment schedule and Akshaya Bank immediately negotiates a multi-year restructuring agreement with the following terms:
　　- Principal Repayment: Bullet to 2 years.
　　- Loan Rate: 6% fixed, annual pay.
　　- UpFROnt fee: 50 basis point.
　　- Akshaya Bank's discount rate: 8%
　　- Guarantees and Options: None.
　　Based on the given inforrmation， Akshaya Bank's concessionality is close to:
　　A. USD 96.93 million
　　B. USD 4.08 million
　　C. USD 96.43 million
　　D. USD 3.58 million
　　Answer:D
　　PV ofthe restructured loan =[USDlOO x 0.005] +[(USDO+(USDlOOxO.06))/1.08] +[(USDIOO+(USD 10O x O.06 )/ 1.082]
　　= 0.50 + 5.55 + 90.88
　　= USD 96.93 million.
　　COllcessionality = USD 100.51 - USD 96.93 = USD 3.58 million.