Question
Six months ago, Qualitybank issued a $118 million, one-year-maturity CD, denominated in British pounds (Euro CD). On the same date, $69 million was invested in
Six months ago, Qualitybank issued a $118 million, one-year-maturity CD, denominated in British pounds (Euro CD). On the same date, $69 million was invested in a -denominated loan and $49 million in a U.S. Treasury bill. The exchange rate on this date was 1.5382 for $1. If you assume no repayment of principal and if todays exchange rate is 1.1905 for $1: |
a. | What is the current value of the Euro CD principal in dollars and pounds? (Do not round intermediate calculations. Enter your answers in millions. Round your answers to 2 decimal places. (e.g., 32.16)) |
Euro CD principal in pounds | |
Euro CD principal in dollars | $ |
b. | What is the current value of the British loan principal in dollars and pounds? (Do not round intermediate calculations. Enter your answers in millions. Round your answers to 2 decimal places. (e.g., 32.16)) |
British loan principal in pounds | |
British loan principal in dollars | $ |
c. | What is the current value of the U.S. Treasury bill in dollars and pounds? (Do not round intermediate calculations. Enter your answers in millions. Round your answers to 2 decimal places. (e.g., 32.16)) |
U.S. Treasury bill in pounds | |
U.S. Treasury bill in dollars | $ |
d. | What is Qualitybanks profit/loss from this transaction in dollars and pounds? (Input all amounts as positive values. Do not round intermediate calculations. Enter your answers in millions. Round your answers to 2 decimal places. (e.g., 32.16)) |
Qualitybanks (Click to select)profitloss in pounds | |
Qualitybanks (Click to select)profitloss in dollars | $ |
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