5 Assume that annual interest rates are 8 percent in the United States and 7 percent in Turkey. An Fl can borrow (by issuing CDs) or lend (by purchasing CDs) at these rates. The spot rate is $0.6648/Turkish lira (TL). 10 points a. If the forward rate is $0.6735/TL, how could the bank arbitrage using a sum of $6 million? What is the spread earned? (Do not round intermediate calculations. Round your answer to 4 decimal places. (e.g., 32.1616)) b. At what forward rate is this arbitrage eliminated? (Do not round intermediate calculations. Round your answer to 5 decimal places. (e.g., 32.16161)) 8 02:01:35 a. % Spread earned Forward rate eBook b TL Print References