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Suppose that you are an American investor. Sometime back, you bought a Bund (a German government bond) at par for 100,000 EUR (which includes accrued
Suppose that you are an American investor. Sometime back, you bought a Bund (a German government bond) at par for 100,000 EUR (which includes accrued interest). At the time, the spot EUR:USD was $1.0722. Yesterday, you sold the Bund for 104,500 EUR (which includes accrued interest). Over the period that you held the bond, you collected coupon interest of 11,250 euros. At the time you sold the bond, you converted the sale proceeds and the coupons collected back to dollars at a spot exchange rate of EUR:USD = $0.8875. dollars?
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