At the beginning of year 1 the Terranian central bank conducted TEK100 million of dollar selling/terranian kwacha buying intervention. The intervention was undertaken at the rate of 1 dollar per...

Extracted text: At the beginning of year 1 the Terranian central bank conducted TEK100 million of dollar selling/terranian kwacha buying intervention. The intervention was undertaken at the rate of 1 dollar per kwacha and immediately afterwards the currency strengthened to 11 dollars per kwacha and stayed there. At the end of year 5 the exchange rate is still at 1.1 whilst kwacha 1 year interest rates are (and have always been) 4% whilst dollar 1 year interest rates are (and have always) been 0.25%. What is the profit/loss of the intervention at the end of year 5 in million Kwacha? Quote you answer to 1 decimal place and express a loss by putting a'in front of your answer (if a profit do not put a '+ Answer: Next pi