This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If you receive a dollar return of 6 percent on a one-year Korean bond that yields 10 percent ... (Read 104 times)

lracut11

  • Hero Member
  • *****
  • Posts: 536
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.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

SAUXC

  • Sr. Member
  • ****
  • Posts: 318
Reply #1 on: Jun 30, 2018
Answer to Question 1

a

Answer to Question 2

d


lracut11

  • Hero Member
  • *****
  • Posts: 536
Reply #2 on: Jun 30, 2018
Thank you


SAUXC

  • Sr. Member
  • ****
  • Posts: 318
Reply #3 on: Jun 30, 2018
No problemo


« previous next »
 

Did you know?

It is important to read food labels and choose foods with low cholesterol and saturated trans fat. You should limit saturated fat to no higher than 6% of daily calories.

Did you know?

Giardia is one of the most common intestinal parasites worldwide, and infects up to 20% of the world population, mostly in poorer countries with inadequate sanitation. Infections are most common in children, though chronic Giardia is more common in adults.

Did you know?

Interferon was scarce and expensive until 1980, when the interferon gene was inserted into bacteria using recombinant DNA technology, allowing for mass cultivation and purification from bacterial cultures.

Did you know?

About 3% of all pregnant women will give birth to twins, which is an increase in rate of nearly 60% since the early 1980s.

Did you know?

Signs of depression include feeling sad most of the time for 2 weeks or longer; loss of interest in things normally enjoyed; lack of energy; sleep and appetite disturbances; weight changes; feelings of hopelessness, helplessness, or worthlessness; an inability to make decisions; and thoughts of death and suicide.

Reversible formation of a disulfide bond by the oxidation of two molecules Reversible formation of a disulfide bond by the oxidation of two molecules
3-13 Formation of a peptide bond by condensation 3-13 Formation of a peptide bond by condensation
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 ...
Hydrogen Bond Hydrogen Bond
How to convert fractions to decimals to percent How to convert fractions to decimals to percent
Twenty percent of the automobiles inspected at a state inspection station required repairs to ... Twenty percent of the automobiles inspected at a state inspection station required repairs to ...
Video: Medullary osmotic gradient - influencing factors

For a complete list of videos, visit our video library