A city borrows $ 1 million, paying semi-annual interest at j2 = 9%. The city creates a sinking fund in which semi-annual deposits of $37360.93 are made in order to accumulate the $ 1 million needed to repay the loan upon maturity. The sinking fund earns j2 = 8%.What is the book value of the debt at the end of the 5 years?

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