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7. Using the following table, calculate the 90-day return of the U.S. investor if he invests in Canada. Spot rate of C$ $0.81 90-day forward

7. Using the following table, calculate the 90-day return of the U.S. investor if he invests in Canada.

Spot rate of C$ $0.81
90-day forward rate of C$ $0.79
90 day Canadian interest rate 4%
90 day U.S. interest rate 2.5%

A. -1.16%

B. -1.43%

C. -1.97%

D. -2.10%

E. -2.55%

F. -2.70%

8. A company issues convertible bonds with a coupon rate of 5%. The par value is $1700, and the bonds mature in 10 years. The current stock price of the company is $68, and the conversion price is $62. The yield of a straight-debt is 13%

Please calculate the bond's conversion value?

A. -1575.69

B. -1692.17

C. -1864.52

D. -1974.19

E. -1998.47

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