Maltese Falcon: The Black Bird. Imagine that the mythical solid gold falcon, initially intended as a trbute by the Knights of Malta to the King of Spain in apprecialion for his gift of the island of Malla to the order in 1530 , has recently boen rocoverod. The falcon is 14 inches high and solid gold, weighing approximately 48 pounds. Assume that gold prioes have risen to $442 lounce, primarty as a result of increasing political fensions. The falcon is currently held by a privale investor in Istanbul, who is actively negotiating with the Maltese government on its purchase and prospoctive retum to its island home. The sale and payment are to take place one year from now, and the parbes are negotating over the ptice and curtency of payment. The ifvestor has decided, in a show of goodwill, fo base the sales price only on the falcon's specie value-its gold value. The current spot exchango rate is 0.3904 Maltese lira (ML) per 1.00 U S. dolar. Maltese intlaticn is expected to be about 8.501%. for the coming year, while U.S. inflation, on the heels of a double-dip recossion, is expected to come in at only 1.498% If the investor bases value in the U.S. dollac. would ho be better ot receiving Maltese ira in one yoar (astuming purchasing power parity) or recoiving a guaranteed dollar paytient (assuming a gold price of 5425 . ber ounce one yoar from now)? If the irvestor bases his gross sales proceeds in U.S. dolars, the guarantood dollar payment yielde: (fiound to the noarest cent.)