You invest USD1000 in a local currency 10 year bond in country X with a coupon of 15% priced at par, at the prevailing exchange rate of 3 LC/USD. At the same time, US one-year yields are at 4%. At the end of one year, you decide to divest and repatriate the funds into USD. However, local yields for 9 year bonds have risen to 17%. Also, the exchange rates have moved to 3.5 LC/USD. How much have you lost/gained vs investing in the US for the same 1 year horizon.