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Bobco invests 5,000,000 South African rand at a nominal interest rate of 10 percent. At the time the investment is made, the spot rate of
Bobco invests 5,000,000 South African rand at a nominal interest rate of 10 percent. At the time the investment is made, the spot rate of the rand is $.081. If the spot rate of the rand at maturity of the investment is $.079, what is the effective yield of investing in rand??
8.9%
10.0%
none of the options listed
7.3%
12.8%
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