9. You are an Argentine investor with your investment account denominated in Argentine Pesos (ARS). Your convert your ARS to Brazilian reals (BRL) and invest on 12/31/21 in an BRL 1,000 face value BRL-denominated 7% coupon Brazilian government bond with three years to maturity. On 12/31/21 market yields (your required rate of return) for the bond are 6%. On 12/31/21, you buy a forward contract when ARS 1-yr interest rates are 8% and BRL 1-yr interest rates are 6% and. IRP holds. On 12/31/21, 1 BRL = 60 ARS On 12/31/22, 1 BRL = 40 ARS RAZ On 12/31/22, market yields (required rates of return) for the bond are now 5%. You sell your bond on 12/31/22. a. What is the 1-yr local return of the BRL bond? b. What would have been the 1-year holding period return (HPR) in ARS for holding the bond from 12/31/21 to 12/31/22 unhedged? asw slaz add hi olaray and to alea gitt sol sa ignem zong blow law ES30 c. Build out a forward contract the investor could buy to hedge the FX risk. d. IRP holds. What is the 1-year holding period return (HPR) in ARS for holding the bond hedged with your hedge contract from 12/31/21 to 12/31/22?