South Korean treasury bonds maturing in seven years currently trade at 91 percent and pay an annual

Question:

South Korean treasury bonds maturing in seven years currently trade at 91 percent and pay an annual coupon of 7. 5 percent while similar U.S. Treasuries paying an annual coupon of 4. 25 percent currently trade at 103 percent. Both bonds are redeemed at par. What would be your forecast for appreciation/depreciation of the South Korean won against the U.S.

dollar over the next seven years?

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