Your firm recently lent Arlington Enterprises $22,300,000 for one year at an interest rate of 13.50%. Inflation during the year is expected to be 3.50%. Answer the following questions to gauge the impact of inflation on the real interest to be paid. (Round all answers to 2 decimal places.)

a. How much interest income will your firm receive from the transaction, calculated the traditional way?

Economy	probability	YTM	PRICE	Capital	Coupon Interest	HPR
boom	0.25	6.0	?	?	?	?
normal growth	0.45	5.0	?	?	?	?
recession	0.30	4.0	?	?	?	?

Boom	0.25	6.0
normal growth	0.45	5,0
recession	0.30	4.0