Fourteen years ago, the Archer Corporation borrowed 56,150,000 Since then, cumulative inflation has been 73 percent (a compound rate of approximately 4 percent per year) a. When the firm repays the original $6150,000 loan this year, what will be the effective purchasing power of the $6150,000? (Hint: Divide the loan amount by one plus cumulative inflation) (Do not round Intermediate calculations and round your answer to the nearest whole dollar.) Effective purchasing power b. To maintain the original $6.150.000 purchasing power how much should the lender be repaid? (Hint Multiply the loan amount by one plus cumulative inflation) (Do not round intermediate calculations and round your answer to the nearest whole dollar) Loan repayment O CRI Suor A $1,000 par value bond was issued 30 years ago at a 12 percent coupon rate. It currently has 25 years remaining to maturity Interest rates on similar obligations are now 8 percent. Assume Ms. Bright bought the bond three years ago when it had a price of $1040 Further assume Ms Bright paid 35 percent of the purchase price in cash and borrowed the rest known as buying on margin) She used the interest payments from the bond to cover the interest costs on the loan a. What is the current price of the bond? Use Table 16 2 (Input your answer to 2 decimal places.) 50 Price of the bond b. What is her dollar pront based on the bonds current price? (Do not round intermediate calculations and round your answer to 2 decimal places.) Dollar profit