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27 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

27 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,(495)/($)

. Assume no repayment of principal and an exchange rate today of

(1.15)/(S)

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

-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)?

image text in transcribed
27 Six months ago, Qualitybank issued a $100 million, one-year maturity CD denominated in euras. On the same date, $60 million was invested in a -denominated loan and $40 million was invested in a U.S. Treasury bill. The exchange rate on this date was 1,495/$. Assume no repayment of principal and an exchange rate loday of 1.15/S. a. What is the current value of the CD principal (in euros and dollars)? b. What is the current value of the -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)

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