On April 1, Barclays of London receives a Eurodollar deposit of $10 million for 150 days, on which it pays 6.25%. Barclays then loans this amount to a corporation for 210 days at 6.85%. assume that there are 360 days in a year. at what rate should Barclays refinance the loan at the end of 150 days in order to break even? if Barclays refinances the loan at 6.15% p.a. at the end of 150 days, how much profit or loss would the bank make on the $10 million deposit?          

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a The breakeven rate is the rate at which the present ... View the full answer