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Rate of return to the swiss investor

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Reference no: EM131317231

Suppose one year ago a Swiss investor bought one year U.S. Treasury bills at a price of $9,500 with a maturity value of $10,000. The exchange rate at that time was 1.420 Swiss francs per dollar. Today, at maturity, the investor receives $10,000 and the exchange rate is 1.324 Swiss francs per dollar. What is the rate of return to the Swiss investor?

  • 5.26%
  • -1.89%
  • 5.00%
  • -2.63%

Reference no: EM131317231

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