Assume a U.S. investor buys a Mexican bond with a face value of MXP 1,000 and a 20 percent annual interest yield while the exchange rate is MXP 10 per dollar. What is the dollar return from the bond if the exchange rate at the end of the year is MXP 11 per dollar?
a. 9.1%
b. 10.0%
c. 18.2%
d. 20.0%
e. 32.0%
a
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The study of the problems due to asymmetric information was begun when economists analyzed which type of market?
A) the market for automobiles B) farmers' markets C) the market for insurance D) the market for citrus fruit
If one dollar buys 10 pesos, then one peso buys ten cents of a dollar
Indicate whether the statement is true or false
Nations trade what they produce in excess of their own consumption to:
a. generate jobs for the domestic economy. b. earn "good will" from the World Bank. c. prevent chronic surpluses from driving down domestic prices. d. acquire other things they want to consume. e. reduce the size of their foreign trade deficit.
Corporate management can defend itself against the threat of a hostile takeover in all of the following ways except
a. use of shark repellent activities b. buying its own corporate stock c. acquiring considerably more debt d. finding a white knight e. keeping a large cash reserve for an emergency