53. (LO 6.6) Bower is a Canadian investor. He noticed that the euro spot rate is currently quoted at C$1.4768 per euro. The European interest rate is 6 percent on one-year T-bills, and the one-year interest rate in Canada is 3 percent. The one- year forward rate is C$1.409/euro. Determine whether there is an arbitrage opportunity. State the transactions Bower should apply to profit from the arbitrage opportunity if one exists. Explain what would happen if many other investors also seized such an arbitrage opportunity, if one existed. 54. (LO 6.7) A bond that matures in 10 years is callable in three years at a call price of $1,025. The bond has a semi-annual coupon rate of 8 percent. If the YTM is 7.3 percent and the YTC is 6.92 percent, what is the bond's current price? Is this bond likely to be called? 55. (LO 6.7) A 12-year, 7.5-percent bond is callable in four years at a call price of $1,045. If the bond pays semi-annual coupons and is selling for $1,038, what is the YTM and YTC of the bond? Is this bond likely to be called?