4. Today, First National Bank of Memphis issued $100 million of one-year CDs in the United States at a rate of 2.50 percent. It invests $50 million in one-year loans to U.S. corporations at an annual rate of 4.5 percent. The remaining $50 million was loaned, with one-year maturity, to a corporation in Chile yielding 6 percent on Chilean Pesos (CLP). All proceeds of loans, both U.S. and Chile, will be received at the end of the year. The exchange rate today for Chilean Peso loans is $0.00119529/Chilean Peso (CLP) or CLP 836.62/$. a. What will be the net return (Return on Loan interest minus cost of funds for the $100 million of one-year CDs) if the exchange rate between the Chilean Peso and the U.S. dollar remains the same? Cost of funds = 0.025 x $100 million $ Return on U.S. loan = 0.045 x $50 million Return on Chilean Loan = .06xCLP41,831millionx$0.00119529/CLP Total interest earned Net % return on investment - ||