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You are a corporate treasurer for POET. The quoted rate on dollar denominated euro commercial paper has just blipped down recently. Your firm can issue

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You are a corporate treasurer for POET. The quoted rate on dollar denominated euro commercial paper has just blipped down recently. Your firm can issue $10 million of 180-day euro commercial paper in the London markets at 3.55%. You can also invest the proceeds in the United States in comparable maturity negotiable dollar-denominated CDs, which are quoting 4.05%. Ignoring any transactions costs, how much money, if any, can POET make by borrowing in the euro markets and investing in the United States? Is this a good deal or not? Should you expect it to last? Explain

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