Calculate the banks net interest

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Reference no: EM133325736

Question: US Bank has US$200 million worth of one year loans earing an average rate of Return of 4%. The bank has one year single payment Canadian dollar loans of C$110 million earning 6%. The banks funding source is $300 million in US$ one year CDs, on which they are paying 3%. Initially the exchange rate is C$1.10 per US$1. The one-year forward rate is C$1.14 per US$1. Calculate the bank's net interest

Reference no: EM133325736

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