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At the beginning of the year (January 1st), assume euros and pounds are interchangeable. Twenty Euros can be converted to Twenty Pounds. During the year,
At the beginning of the year (January 1st), assume euros and pounds are interchangeable. Twenty Euros can be converted to Twenty Pounds. During the year, the Euro Strengthens. On December 1st of that year - the exchange rate is now 0.81 Euros for one Pound. Assume Scott bought a bond traded in euros for 1,125 pounds on January 1st. Assuming no changes in credit quality or interest rates, what is the bond worth today in pounds? 911.25
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