$($LO $6\mathrm{.}6)$ Adam has saved $C$$$1,000$ and plans to go surfing in Australia next summer. He won't need the money for a year, so he decides to invest it$.$ Adam could invest the money in Canada, where a T$-$bill will earn $4\mathrm{.}5$ percent, and then convert it to Australian dollars $($AU$$)$ just before he leaves. Alternatively, Adam could convert the funds today and invest in an Australian T$-$bill earning $5\mathrm{.}2$ percent. Which approach should he take if the currency spot rate is C$$0\mathrm{.}90431/$AU$ and the one$-$year forward rate is C$$0\mathrm{.}89829/$AU$$?$

Challenging

$47.($LO $6\mathrm{.}2)$ A $20-$year semi$-$annual bond has just been issued with its coupon rate set at the current market yield of $6$ percent. How much would the price of the bond change $($in percentage terms$)$ if