Current value of the Euro CD principal in dollars and pounds

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Reference no: EM132046270

Six months ago, Qualitybank issued a $128 million, one-year-maturity CD, denominated in British pounds (Euro CD). On the same date, $74 million was invested in a £-denominated loan and $54 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 today’s 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 Qualitybank’s 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)) Qualitybank’s in pounds=? Qualitybank’s in dollars=?

Reference no: EM132046270

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