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Sun Bank USA has purchased a 8 million one year Australian dollat loan that pays 13 percent interest annually. The spot rate of US dollars

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Sun Bank USA has purchased a 8 million one year Australian dollat loan that pays 13 percent interest annually. The spot rate of US dollars for Australian dollars (AUD/USD) is $0.625/A$1 it has funded this loan by accepting a. British pound (BP)-denominated deposit for the equivalent amount and maturity at an annual fate of 11 percent. The current spot rote of US. dollars for British. pounds (GBPJSD) is \$1.60/21. o. What is the net interest income earned in dollars on this one-year transaction if the spot rate of U.S dollars for Australian dolfars and US dollars for BPs at the end of the year are $0.588/A$1 and $1.450/k1, respectively? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers in dollars, rather than in millions of dollars. Round your final answer to the nearest whole dollar. (e.g., 32)) b. What should the spot rate of US, dollars for BPS be at the end of the year in order for the bank to earn a net interest income of $190,000 (disregarding any change in principal values)? (Round your answer to 5 decimal places. (e.g., 32.16161))

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