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1. A US bank issues $25 million in 1-year CDs at a yield of 1.2% and lends those funds out in the EU for 1
1. A US bank issues $25 million in 1-year CDs at a yield of 1.2% and lends those funds out in the EU for 1 year at an interest rate of 3.1%. The current spot rate is 0.9811 $/. What is their profit in 1 year given the following spot exchange rates? a. 0.9451 $/
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