Problem 9.4 (LG 9-5) Bank USA recently purchased $10.5 million worth of euro-denominated one-year CDs that pay 11 percent interest annually. The current spot rate of US dollars for euros is $1104/61 a. Is Bank USA exposed to an appreciation or depreciation of the dollar relative to the euro? b. What will be the return on the one-year CD if the dollar appreciates relative to the euro such that the spot rate of U.S. dollars for euros at the end of the year is $1.004/61? (Round your answer to 3 decimal places. (e.g., 32,161)) c. What will be the return on the one-year CD if the dollar depreciates relative to the euro such that the spot rate of US dollars for euros at the end of the year is $1204/61? (Round your answer to 3 decimal places. (e.g. 32,161)) a l'Appreciation b Exposure Rotum If dollar appreciates Return if dollar depreciates %