Question
You bought a yen-denominated corporate bond at the beginning of the year for Yen100,000. The bond paid 3.5 percent annual interest and was trading for
You bought a yen-denominated corporate bond at the beginning of the year for Yen100,000. The bond paid 3.5 percent annual interest and was trading for Yen 120,000 at year-end. The exchange rate was $1 = Yen 100 at the beginning of the year and $1 = Yen 125 at year-end. What holding period return, measured in yen, did you earn on the bond?
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Roberts, Hamdi Driss
8th Canadian Edition
01259270114, 9781259270116
