Problem 15 * Intro Green Charter Bank is a U.S. money center bank that wants to speculate on the dollar-yen exchange rate. A yen () costs $0.0096 today. The bank expects it to cost $0.009 in 7 months. Current annual interest rates are as follows: Currency Yen U.S. dollar Borrowing rate 4.9% Lending rate 4.2% 7.3% 6.8% The bank doesn't want to use any of its own money, but could borrow either $10,000,000 or 1,000,000,000 Assume there are 30 days in every month and 360 days per year. Ignore compounding when working with the interest rates. Part 1 Attempt 1/5 for 10 pts. Should the bank borrow dollars or yen? Yen Dollars Correct Since the bank expects the yen to depreciate against the dollar, it should borrow yen Part 2 What is the initial value of the loan after conversion (in %)? Attempt 2/6 for 10 pts. 0+ decimals Submit here to search E Part 3 - Attempt 1/6 for 10 pts What is the value after investing the amount from the previous part for 7 months (in $)? 0+ decimals Submit Part 4 Attempt 1/6 for 10 pts What amount is necessary to pay back the loan with interest (in yen)? 0+ decimals Submit Part 5 Attempt 1/6 for 10 pts What amount of home currency is expected to be needed to pay back the loan with interest (in $)? 0+ decimals Submit Part 6 Attempt 1/6 for 10 pts What is the expected profit from the trade in $)? 0+ decimals Submit