The forward rate of exchange is 2 , the spot rate of exchange is 1.75. The US has a bond of 9% interest and Canada has a bond for 5% interest. What is the amount you can collect in US dollars for the Canada bond on an investment of $10,000? Group of answer choices

The forward rate of exchange is 2 , the spot rate of exchange is 1.75. The US has a bond of 9% interest and Canada has a bond for 5% interest. What is the amount you can collect in US dollars for the Canada bond on an investment of $10,000? Group of answer choices

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter36: Exchange Rates And Financial Links Between Countries

Section: Chapter Questions

Problem 18E

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Group of answer choices

$10,937.50 and the Canadian investment is worse than the US investment

$10,900 and the Canadian investment is better than the US investment

$10,900 and the Canadian investment is worse than the US investment

$10,937.50 and the Canadian investment is better than the US investment

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The forward rate of exchange is 2 , the spot rate of exchange is 1.75. The US has a bond of 9% interest and Canada has a bond for 5% interest. What is the amount you can collect in US dollars for the Canada bond on an investment of $10,000? $10,937.50 and the Canadian investment is better than the US investment $10,937.50 and the Canadian investment is worse than the US investment $10,900 and the Canadian investment is better than the US investment $10,900 and the Canadian investment is worse than the US investment
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