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

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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 $40 million was invested in a U.S. Treasury bill. The exchange rate on this date was 1.7382/$. Assume no repayment of principal and an exchange rate today of 1.3905/$.

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 dol- lars 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)?

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