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Author Question: If you receive a dollar return of 6 percent on a one-year Korean bond that yields 10 percent ... (Read 123 times)

lracut11

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on: Jun 30, 2018
If you receive a dollar return of 6 percent on a one-year Korean bond that yields 10 percent annually, this means that between the purchase date and the time of maturity:
 a. the Korean won (KRW) has depreciated 4 percent against the U.S. dollar.
  b. the dollar price of the Korean won (KRW) has risen by 10 percent.
  c. the percentage change in the dollar per Korean won exchange rate is 6 percent.
  d. the dollar proceeds from the Korean bond are 4 percent higher than the initial dollar investment.
  e. the dollar has depreciated 16 percent against the Korean won.

Question 2

Which of the following will create a demand for or a supply of currencies?
 a. Trade in goods
 b. Trade in services
 c. Trade in financial instruments
  d. Any of the above.


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SAUXC

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Reply #1 on: Jun 30, 2018
Answer to Question 1

a

Answer to Question 2

d


lracut11

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Reply #2 on: Jun 30, 2018
Thank you


SAUXC

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Reply #3 on: Jun 30, 2018
No problemo


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