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Name: FINA318 Exam 2v2 Section 2 Calculations. Spt each part, 50 pts total. Show your work, no work = 0 pt! Do not round your
Name: FINA318 Exam 2v2 Section 2 Calculations. Spt each part, 50 pts total. Show your work, no work = 0 pt! Do not round your work. For 1, 2, 3, 4 & 5: A newspaper provides spot exchange rate of $1 = .7555 and 1-year forward rate of $1=.7755. You'll also need to use the additional information provided in the problems. 2) John purchases a 10-year zero coupon Bulldog bond with the par of 1 Million using USD. The bond YTM is 3% and he uses the provided spot and forward quotes to transact. Calculate his USD annual return for this investment, in percent round to 2 decimal places
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