Author Question: Suppose a U.S. citizen invests 1,000 to purchase a one-year Japanese bond that has an interest yield ... (Read 93 times)

Lobcity · **on:** Jun 30, 2018

Suppose a U.S. citizen invests 1,000 to purchase a one-year Japanese bond that has an interest yield of 10 percent. If the dollar appreciates 20 percent against the Japanese yen by the maturity date, the dollar value of the proceeds is _____.
a. 900
b. 1,100
c. 1,300
d. 1,500
e. 1,200

Question 2

On January 12, 2011, one U.S. dollar was worth 0.78 euros. How many U.S. dollars did it take to buy one euro?
a. 0.78
b. 1.28
c. 1.43
d. 1.70