Question
Six months ago, Qualitybank issued a $100 millon, one year maruricy CD denam inated in euros. On the same date, S60 million was invested in
Six months ago, Qualitybank issued a
$100
millon, one year maruricy CD denam inated in euros. On the same date,
S60
million was invested in a e-denominated loan and
$40
million was invered in a US. Treasury bill The exchange rate on this dace was e1.495/5, Assume no repayment of principal and an exchange rate today of
e*(1.15)/(s)
.\ What is the current value of the CD principal (in euros and dolthrs)\ b. What is the current value of the e-denominated loan principal in dollars and euros)?\ c. What is the current value of the US. Treasury bill (in euros and dollars)t.\ d. What is Qualitybank's profil/koss from this cransaction in euros and dollars?
27. Six months ago, Oualitybank issued a $100 millon, one year maruricy CD denam inated in euros. On the same date, $60 million was invested in a e-denominated loan and $40 million was invered in a US. Treasury bill The exchange rate on this date was e1,495/s, Assume no repayment of principal and an exchange rate roday of E.1.15/\$. 1. What is the current value of the CD principal (in euros and dolthrs) b. What is the current value of the e-denominated loan principal in doilars and euros)? c. What is the current value of the US. Treasury till (in euros and dallars)t d. What is Qualitybank's profiL/koss from this cransaction tin euros and dollars
Six months ago, Qualitybank issued a
$100
millon, one year maruricy CD denam inated in euros. On the same date,
S60
million was invested in a e-denominated loan and
$40
million was invered in a US. Treasury bill The exchange rate on this dace was e1.495/5, Assume no repayment of principal and an exchange rate today of
e*(1.15)/(s)
.\ What is the current value of the CD principal (in euros and dolthrs)\ b. What is the current value of the e-denominated loan principal in dollars and euros)?\ c. What is the current value of the US. Treasury bill (in euros and dollars)t.\ d. What is Qualitybank's profil/koss from this cransaction in euros and dollars?
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