Solution-What is the implied exchange rate at maturity

What is the implied exchange rate at maturity

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A five-year, 7.5 percent Euroyen bond sells at par. A comparable risk five-year, 9.0 percent yen/dollar dual-currency bond pays $840.33 at maturity. It sells for ¥110,000. What is the implied ¥l$ exchange rate at maturity? Hint: The dual-currency bond pays 9.0 percent on a notional value of ¥100,000, whereas the par value of the bond is not necessarily equivalent to ¥100,000. (Do not round intermediate calculations. Round your answer to 3 decimal places.)

Reference no: EM133060970

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What is the implied exchange rate at maturity

Reference no: EM133060970

Reference no: EM133060970

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