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Luminex Trust Bank Ltd issued a A$170 million, one-year maturity CD, denominated in euro (euro CD) six months ago. On the same date, A$130
Luminex Trust Bank Ltd issued a A$170 million, one-year maturity CD, denominated in euro (euro CD) six months ago. On the same date, A$130 million was invested in a euro- denominated loan and A$40 million was invested in an Australian Treasury bond. The exchange rate on this date was 1.45/A$1. Assume no repayment of principal and an exchange rate today of 1.8/A$1. What is Luminex Trust Bank's profit/loss from this transaction (in A$ and )?
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Financial Markets and Institutions
Authors: Anthony Saunders, Marcia Cornett
6th edition
9780077641849, 77861663, 77641841, 978-0077861667
