« previous next »

Author Question: Suppose that you are an Israeli citizen and had invested in a one-year U.S. bond that yielded 5 ... (Read 152 times)

skymedlock

  • Hero Member
  • *****
  • Posts: 561
on: Jun 29, 2018
Suppose that you are an Israeli citizen and had invested in a one-year U.S. bond that yielded 5 percent. The bond cost 5,000 and paid 5,250 at the end of the year. At the time you bought the bond, the exchange rate was 3.8 shekels/dollar.
 
  How many shekels did the bond cost? If the exchange rate fell to 3.5 shekels/dollar over this time period, what would the return on your investment be?

Question 2

The table above gives data for the nation of Mosh. The amount of autonomous expenditure is
 
  A) 1.5 trillion.
  B) 4 trillion.
  C) 9.0 trillion.
  D) 4.5 trillion.
  E) not shown in this table.


lou

  • Sr. Member
  • ****
  • Posts: 286
Reply #1 on: Jun 29, 2018
Answer to Question 1

The bond cost 19,000 shekels and would have returned 19,950 shekels at the end of the year had the exchange rate stayed constant. However, at the end of the year, your investment was worth 18,375 shekels, so your effective rate of return on the investment was -625 / 19,000 = -3.3 percent.

Answer to Question 2

D


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

If you use artificial sweeteners, such as cyclamates, your eyes may be more sensitive to light. Other factors that will make your eyes more sensitive to light include use of antibiotics, oral contraceptives, hypertension medications, diuretics, and antidiabetic medications.

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Did you know?

According to the CDC, approximately 31.7% of the U.S. population has high low-density lipoprotein (LDL) or "bad cholesterol" levels.

Did you know?

Studies show that systolic blood pressure can be significantly lowered by taking statins. In fact, the higher the patient's baseline blood pressure, the greater the effect of statins on his or her blood pressure.

Reindeer antlers grow again each year under a layer of fur called velvet. This reindeer is losing th Reindeer antlers grow again each year under a layer of fur called velvet. This reindeer is losing th
20,000 year old spotted hyena painting from the Chauvet Cave, France 20,000 year old spotted hyena painting from the Chauvet Cave, France
20,000 year old Arctic ground squirrel mummy 20,000 year old Arctic ground squirrel mummy
During my research in India, I interviewed this 8-year-old girl. Mahashury is a bonded laborer who ... During my research in India, I interviewed this 8-year-old girl. Mahashury is a bonded laborer who ...
The average weight gain between Thanksgiving and New Year's Day is about a pound The average weight gain between Thanksgiving and New Year's Day is about a pound
Video: Properties of macromolecules (Explained with No Audio)

For a complete list of videos, visit our video library