Intro Pacific Investment Bank is a U.S. investment bank that wants to speculate on the dollar-euro exchange rate. A euro () costs $1.16 today. The bank expects it to cost $1.21 in 12 months. Current annual interest rates are as follows: Currency Euro U.S. dollar Borrowing rate 4.5% 7.2% Lending rate 4.3% 6.7% The bank doesn't want to use any of its own money, but could borrow either $10,000,000 or 10,000,000. Assume there are 30 days in every month and 360 days per year. Ignore compounding when working with the interest rates. Attempt 1/5 for 10 pts. Part 1 Should the bank borrow dollars or euros? Dollars Euros Submit Part 2 Attempt 1/6 for 10 pts. What is the initial value of the foreign currency after conversion (in euro)? 0+ decimals Submit Part 3 What is the foreign currency value after investing it for 12 months (in euro)? 0+ decimals Submit Part 4 Attempt 1/6 for 10 pts. What is the expected value of the investment after investing it for 12 months and converting it back to the home currency (in dollars)? 0+ decimals Submit Part 5 Attempt 1/6 for 10 pts. What amount is necessary to pay back the loan with interest (in $)? 0+ decimals Submit - Attempt 1/6 for 10 pts. Part 6 - Attempt 1/6 for 10 pts. Part 6 What is the expected profit from the trade after paying off the loan and interest (in $)? 0+ decimals Submit