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The annual interest rate on US corporate bonds is 0.05 while corporate bonds in Brazil carry an interest rate of 0.25. The current exchange rate
The annual interest rate on US corporate bonds is 0.05 while corporate bonds in Brazil carry an interest rate of 0.25. The current exchange rate is 3.0- as it costs 3.0 dollars to purchase one unit of Brazilian currency. You expect that the exchange rate will be 2.0 in a year. The expected return on investing in Brazil equals.
A)-0.25
B)0.15
C)-0.25
D)0.20
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