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You have the opportunity to invest $1,000 for one year. All other things being equal, you have the opportunity to obtain a 1-year Mexican bond
You have the opportunity to invest $1,000 for one year. All other things being equal, you have the opportunity to obtain a 1-year Mexican bond (in pesos) at 8.00%. The spot rate is 10.9892 pesos per $1. The 1-year forward rate is 11.2274 pesos per $1. What will be the value of the investment (in U.S. dollars) at the end of one year? $1,043 $1,080 $1,057 $1,072
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