You are a Owner of a Donut Shop. You want to ask the bank for a loan to complete a rennovation. The loan is backed by the future two year profits of the hotel.

Hotel Expected Earnings:

In $6$mos. $$300,000$

In $1$yr$.$ $$200,000$

In $1\mathrm{.}5$yr$.$ $$300,000$

In $2$yr$.$ $$200,000$

Bonds availible for trading:

$1.$ T$-$Note $|$ Maturity: $2$yr $|$ Face: $$1000|$ Coupon: $10\%$ Semi$-$annual $|$ Trades at Par

$2.$ T$-$Note $|$ Maturity: $2$yr $|$ Face: $$1000|$ Coupon: $2\%$ Semi$-$annual $|$ Trades at $$930$

$3.$ T$-$Bill $|$ Maturity: $1$yr $|$ Face: $$1000|$ Coupon: $0\%$ Semi$-$annual $|$ Trades at $$950$

$4.$ T$-$Bill $|$ Maturity: $0\mathrm{.}5$yr $|$ Face: $$1000|$ Coupon: $0\%$ Semi$-$annual $|$ Trades at $$970$

Question:

$1.$a$.$ What is the largest loan the bank would be willing to give you?

$1.$b$.$ If there is an expected inflation rate of $5\%$ every $6$mos., what is the largest loan the bank would be willing to give you?

$1.$c$.$ T$-$Notes have changed, new T$-$Note:

T$-$Note $|$ Maturity: $2$yr $|$ Face: $$1000|$ Coupon: $5\%$ Semi$-$annual $|$ Trades at Par

Now what's the largest loan the bank will make you and comment on what the differences are from the first question.