Question
A 1-year, 4 percent euro denominated bond sells at par. A comparable risk 1-year, 5.5 percent euro/dollar dual-currency bond pays $1,500 at maturity per 1,000
A 1-year, 4 percent euro denominated bond sells at par. A comparable risk 1-year, 5.5 percent euro/dollar dual-currency bond pays $1,500 at maturity per 1,000 of face value. It sells for 1,250. What is the implied $/ exchange rate at maturity?
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Finance Basics 20 Minute Manager
Authors: Harvard Business Review
1st Edition
1625270852, 978-1625270856
