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Suppose that you buy, and one year later sell, a foreign ( British ) bondLOADING... under the following circumstances: When you buy the bond the
Suppose that you buy, and one year later sell, a foreignBritish bondLOADING... under the following circumstances:
When you buy the bond the exchange rate is $ pound
You pay pound$ for the British bond.
You sell the bond for pound No interest payment was expected or received.
When you sell the bond, the exchange rate is $ pound
Part
What is your gain or loss in dollars? $
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