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The following displays information relevant to international bond investing UK Japan Germany 1-month interest rate (%) Yield on 10-yr government Expected currency change 4.34
The following displays information relevant to international bond investing UK Japan Germany 1-month interest rate (%) Yield on 10-yr government Expected currency change 4.34 4.94 1.2% 0.97 1.67 0.6% 4.36 4.69 0.2% Korea 2.09 2.84 -1.1% The 1-month interest rate is used as a proxy for the risk-free rate and the US 1-month interest rate is 1.8%. Which 10-yr bond will have the highest fully hedged bond return?
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
6th edition
1305637100, 978-1305637108
