Grupo Bimbo (Mexico). Grupo Bimbo, headquartered in Mexico City, is one of the largest bakery companies in the worid. On January 1st, when the spot exchange rate is MXN10.83 = USD1.00, the compony borows USD24.9 milion from a New York bank for one year at 6.85% interest (Mexican banks had quoled 9.61% for an oquivalent ioan in Mexican pesos). During the year, U.S, inflation is 2.1% and Mexican inflation is 4.6%. At the end of the year the firm repays the dollar loan a. If Bimbo expected the spot rate at the end of one year to be that equal to purchasing power parity; what would be the cost to Bimbo of its dollar loan in peso-denominated interest? b. What is the real interest cost (adjusted for inflation) to Bimbo, in peso-donominated terms, of borrowing the dollars for one yoar, again assuming purchasing power parity? c. If the actual spot rate ot the end of the year tumed out to be MXN9.69= USD1:00, what was the actual peso-denominated lnterest cost of the loan? a. If Bimbo expected the spot rate at the end of one year to be that equal to purchasing power parity, what would be the cost to Bimbo of its dollar loan in peso-denominated interest? It Bimbo expected the spot rate at the end of one year to be equal to purchasing power parity, the cost to Bimbo of its dollar loan in peso-denominated interest is to four decimal places.)