Question
A German investor decides in 2019 to purchase U.S. AAA-rated bonds paying 2.17 % per annum because German bonds have a negative return. He/she decides
A German investor decides in 2019 to purchase U.S. AAA-rated bonds paying 2.17 % per annum because German bonds have a negative return. He/she decides to invest 50,000. The rates are as follows:
April 2019: 1 = $ 1.12
April 2021: $ 1 = 0.85
A) How much does the investor bring back to Germany? ______________
B) Calculate the Rate of Return to 2 decimals. Do not compound interest:_______________%
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Financial Markets And Corporate Strategy
Authors: Mark Grinblatt, Sheridan Titman
2nd Edition
0071157611, 9780071157612
