Six months ago, Qualitybank issued a $100 million, one-year maturity CD denominated in euros. On the same date, $60 million was invested in a

:-denominated loan and $40 million was invested in a U.S. Treasury bill. The exchange rate on this date was :1.5675/$. Assume no repayment of principal and an exchange rate today of :1.2540/$.

a. What is the current value of the CD principal (in euros and dollars)?

b. What is the current value of the euro-denominated loan principal (in dollars and euros)?

c. What is the current value of the U.S. Treasury bill (in euros and dollars)?

d. What is Qualitybank’s profit/loss from this transaction (in euros and dollars)?