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An Investor Invests in a Japanese Bond at 7

Question 9

Multiple Choice

An investor invests in a Japanese bond at 7.0% for one year. If the spot exchange rate is 104.00 yen per USD and the one year forward exchange rate is 99, what return should the investor expect on an equivalent USD investment?


A) 9.60%
B) 10.20%
C) 11.92%
D) 12.40%

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