Question
7. You invested $20,000 dollars in Japanese bonds when the exchange rate was 95%/S. Over the one year you held them, the bonds earned
7. You invested $20,000 dollars in Japanese bonds when the exchange rate was 95%/S. Over the one year you held them, the bonds earned 5% interest. What is the amount in US dollars that you will receive if you convert your bonds (including interest) and the exchange rate is 90/$? 8. What is your ROI in pbm 7? og zavou 9. What would your investment in pbm 7 be worth if the exchange rate remained 95/$? What would your return on investment (ROI) be? 10. What if the exchange rate is X99/$? What is your ROI now? Explain what happened.
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