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

Author Question: Assume a U.S. investor buys a Mexican bond with a face value of MXP 1,000 and a 20 percent annual ... (Read 139 times)

D2AR0N

  • Hero Member
  • *****
  • Posts: 561
on: Jun 30, 2018
Assume a U.S. investor buys a Mexican bond with a face value of MXP 1,000 and a 20 percent annual interest yield while the exchange rate is MXP 10 per dollar. What is the dollar return from the bond if the exchange rate at the end of the year is MXP 11 per dollar?
 a. 9.1
  b. 10.0
  c. 18.2
  d. 20.0
  e. 32.0

Question 2

The exchange rate:
 a. states the price of one currency in terms of another currency.
 b. is the rate at which one country's money is flowing to a second country.
  c. is closely related to the concept of comparative advantage.
 d. is closely related to the concept of absolute advantage.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

kthug

  • Sr. Member
  • ****
  • Posts: 332
Reply #1 on: Jun 30, 2018
Answer to Question 1

a

Answer to Question 2

a


D2AR0N

  • Member
  • Posts: 561
Reply 2 on: Jun 30, 2018
:D TYSM

gcook

  • Member
  • Posts: 343
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Allergies play a major part in the health of children. The most prevalent childhood allergies are milk, egg, soy, wheat, peanuts, tree nuts, and seafood.

Did you know?

The toxic levels for lithium carbonate are close to the therapeutic levels. Signs of toxicity include fine hand tremor, polyuria, mild thirst, nausea, general discomfort, diarrhea, vomiting, drowsiness, muscular weakness, lack of coordination, ataxia, giddiness, tinnitus, and blurred vision.

Did you know?

Bacteria have been found alive in a lake buried one half mile under ice in Antarctica.

Did you know?

The first oral chemotherapy drug for colon cancer was approved by FDA in 2001.

Did you know?

People with alcoholism are at a much greater risk of malnutrition than are other people and usually exhibit low levels of most vitamins (especially folic acid). This is because alcohol often takes the place of 50% of their daily intake of calories, with little nutritional value contained in it.

Directionality of the hydrogen bond Directionality of the hydrogen bond
a) Face the direction of your stroke. b) Avoid facing away from your stroke. a) Face the direction of your stroke. b) Avoid facing away from your stroke.
A mere one-half percent of Americans owns over a quarter of the entire nation’s wealth. Very few ... A mere one-half percent of Americans owns over a quarter of the entire nation’s wealth. Very few ...
Daily and Annual Temperature Patterns Daily and Annual Temperature Patterns
Percent of Selected Foods and Beverages Consumed in the United States Percent of Selected Foods and Beverages Consumed in the United States
Nick buys a $25 000, 5.4% bond with quarterly interest coupons, 3 years before maturity, to ... Nick buys a $25 000, 5.4% bond with quarterly interest coupons, 3 years before maturity, to ...
Video: Primary and secondary response to infection

For a complete list of videos, visit our video library