Multiple Choice
Assume that the interest rate in a foreign country is 6% and that the foreign currency is expected to depreciate by 2% during the year. For each dollar that an Australian resident invests in foreign bonds, he/she can expect to get back a total of:
A) $0.94.
B) $1.24.
C) $1.14.
D) $1.04.
E) $0.84.
Correct Answer:
Verified
Correct Answer:
Verified
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