Author Question: Given a one-year Canadian bond with a yield of 8 percent, what will be the U.S. investor's rate of ... (Read 54 times)

Yolanda · **on:** Jun 30, 2018

Given a one-year Canadian bond with a yield of 8 percent, what will be the U.S. investor's rate of return at maturity if the Canadian dollar appreciates 10 percent against the U.S. dollar?
a. 2 percent
b. 8 percent
c. 10 percent
d. 18 percent
e. 25 percent

Question 2

If more French tourists visit the Grand Canyon, what is the effect in the exchange market?
a. It will increase the supply of U.S. dollars.
b. It will decrease the supply of U.S. dollars.
c. It will increase the demand for U.S. dollars.
d. It will decrease the demand for U.S. dollars.