Question
Suppose the initial price of a French bond is 850, the coupon income is 70, the endofperiod bond price is 1,000, and the franc devalues
Suppose the initial price of a French bond is 850, the coupon income is 70, the endofperiod bond price is 1,000, and the franc devalues by 6% against the dollar during the period. What was the bond's total dollar return during the period?
a)8.24%
b)18.33%
c)25.88%
d)27.44%
how to compute this question?
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Financial Markets and Institutions
Authors: Jeff Madura
11th Edition
1133947875, 9781305143005, 1305143000, 978-1133947875
