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Hey, help me solve the question and provide me with explanations and calculations. Thank you! Question 10 OZ Bank in Australia invests in one-year U.S.
Hey, help me solve the question and provide me with explanations and calculations. Thank you!
Question 10 OZ Bank in Australia invests in one-year U.S. treasury bond, which pays an interest rate of 10% per annum. Currently, the spot exchange rate is AU$1.25 per US$. What will be the return in the local currency (AU$) for the bank's U.S. Not yet answered treasury bond investment, if the exchange rate changes to AU$1.15 per US$ in one year? Please express your answer in percentage form (i.e., %), and round the number to the nearest 2nd decimal. You don't need to key in %, though it Marked out of 1.00 does not matter (i.e., 10 and 10% will be treated the same in grading). P FlagStep by Step Solution
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