A bank accepts a six$-$month $\backslash (\backslash$$ $1\backslash )$ million Eurodollar deposit at an interest rate of $\backslash (6\mathrm{.}5\backslash \%\backslash )$ per annum. It invests the money in a six$-$month Swedish Krona bond $($AA rating$)$ paying $7\mathrm{.}5\backslash \%$ per annum. The spot rate is $\backslash (\backslash$$ $0\mathrm{.}18/\backslash$mathrm$\{$SK$\}\backslash ).$ a$)$ the six$-$month SK forward rate quoted is $\backslash (\backslash$$ $0\mathrm{.}1810/\backslash )$ SK$.$ What is the annual spread, if the bank uses the forward market? b$)$ at what forward rate will the spread be $\backslash (1\mathrm{.}5\backslash \%\backslash )$ per annum? c$)$ in part $($a$),$ explain how forward and spot rates will both change in response to the increased spread, d$)$ In part $($b$),$ why will a bank still be able to earn a spread of $\backslash (1\backslash \%\backslash )$ p$.$a$.$ knowing that interest rate parity usually eliminates arbitrage opportunities created by differential rates? $($Note that dollar$-$denominated deposits in the Eurocurrency markets are usually issued by large, highly rated institutions.$)$