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68. Find the value of a three-year dual currency bond with annual coupons (paid in U.S. dollars at a5 percent coupon rate) that pays 500
68. Find the value of a three-year dual currency bond with annual coupons (paid in U.S. dollars at a5 percent coupon rate) that pays 500 per $1,000 par value at maturity. The cash flows of the bond are Year 0 Year 1 Year 2 Year 3 SO $50.00 $50.00 $50 + 500 The dollar-based yield to maturity is 5-3%; the spot exchange rate is $1.80-1.00, expected inflation over the next three years is ms = 2% in the US, and TE = 3% in the UK
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