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5. (4 points) A five year Eurodollar bond with annual coupons at a fixed rate of 6% sells at par ($1,000). A comparable risk five
5. (4 points) A five year Eurodollar bond with annual coupons at a fixed rate of 6% sells at par ($1,000). A comparable risk five year, 8.5% dollar/pound dual currency bond pays 833.33 at maturity and sells for $1,130. What is the implied /$ exchange rate at maturity? Solution
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