Answer should provide steps to the questions. Thank you!

QUESTION 2. On January 1st, 2016, Trinidad Bank issued TTD$250 million of one-year CDs at a rate of 2% p.a. The treasurer recommended the investment of the TTD equivalent of US30 million in a one-year US denominated bond issued by a blue chip U.S. firm at an annual coupon of 4% because he believed the TTD was depreciating (the exchange rate at the time of the transactions on January 1, 2016, was TTD6.5700/USDI). The remaining TTD funds were invested in a Government of the Republic of Trinidad and Tobago bond paying and annual interest rate of 6% p.a. a. At the time of maturity of the deposits on December 31, 2016, the TT dollar had in fact appreciated to TTD6.4500/USD1. What was the net ($) return on the initial investments of the TTD250 million? b. What will be the net ($) return on the TTD250 million investments if the TTD/USD exchange rate is the same at the time of maturity of the investments? c. What could Trinidad Bank have done to protect themselves against adverse movements in the TTD/USD exchange? 4