2. During the first half of 1990, Swiss government bonds yielded a local currency return of 1.6%....

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2. During the first half of 1990, Swiss government bonds yielded a local currency return of −1.6%. However, the Swiss franc rose by 8% against the U.S. dollar over this six-month period. Corresponding figures for France were 1.8% and 2.6%. Which bond earned the higher U.S. dollar return? What was the return on the higher bond?

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International Financial Management

ISBN: 9781118929322

10th Edition

Authors: Alan C. Shapiro, Peter Moles

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