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Emphase Fleading Normal Strong Subtitle Titl Styles Font Paragraph On March 30, 2018, Stafford, LTD., issued a $100 million, one-year maturity CD denominated in
Emphase Fleading Normal Strong Subtitle Titl Styles Font Paragraph On March 30, 2018, Stafford, LTD., issued a $100 million, one-year maturity CD denominated in Euros. On the same date, $60 million was invested in a Euro ()- denominated loan and $40 million was invested in a U.S. Treasury bill The exchange rate on March 30, 2018 was 0.8108/$. Assume no repayment of principal, and an exchange rate on September 26, 2018 of 0.8501/$. Complete the table below for the balance sheets in both Dollars and Euros for both March 30, 2018 and September 26, 2018. Stafford, LTD. May have lost or made money with its exposure to foreign currency, thus determine what actually happened. This problem is similar to problem 7-25 in your text. Exchange rates may be found at: http://www.oanda.com/currency/historical-rates/ Solution matrix for problem At Issue Date-3/30/2018: 0.8108/$ Dollar Transaction Values (in millions) Euro Transaction Values (in millions) Euro Euro Loan $60 CD US T-bill $40 $100 Today 9/26/2018: 0.8501/S Dollar Transaction Values (in millions) Euro $100 Loan U.S. T-bill $100 Euro CD Transaction Values (in millions) Euro Euro Euro Loan S CD S Loan U.S. T-bill$40 U.S. T-bill S S Gain or Loss of $ Euro CD Gain or Loss of
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