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A 4-year, 4.7 percent Euroyen bond sells at par. A comparable risk 4-year, 5.2 percent yen/dollar dual currency bond pays $1008.26 at maturity. It sells
A 4-year, 4.7 percent Euroyen bond sells at par. A comparable risk 4-year, 5.2 percent yen/dollar dual currency bond pays $1008.26 at maturity. It sells for 113,000. What is the implied USD/JPY exchange rate at maturity? (XXX.XX) Hint: The dual-currency bond pays 5.2 percent interest on a notional value of 100,000, whereas the par value of the bond is not necessarily equivalent to 100,000.
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