Grupo Bimbo {Mexico}. Grupo Bimbo, headquartered in Mexico City, is one of the largest bakery companies in the world. On January lst, when the spot exchange rate isPs10.B3E$, the company borrows $24.8 million from a New York bank for one year at 6.79% interest (Mexican banks had quoted 9.64% for an equivalent loan in pesos}. During that year, U.S. ination is 2.3% and Mexican ination is 4.7%. At the end of the year the rm repays the dollar loan. a. If Bimbo expected the spot rate at the end of one year to be equal to purchasing power parity, what would be the cost to Bimbo of its dollar loan in peso-denominated interest? I). What is the real interest cost (adjusted for ination] to Bimbo, ln pesodenominated terms, of borrowing the dollars for one year, again assuming purchasing power parity? c. If the actual spot rate at the end of the year turned out to be Ps9.63 r' 55, what was the actual pesodenominated interest cost of the loan? (:)