Solution:
Gain or loss in dollar = Sale value in dollar - Purchase value in dollar = (50*$2.25) - (45*2) = $22.50
Suppose that you buy, and one year later sell, a foreign (British) bond under the following...
Suppose that you buy, and one year later sell, a foreign (British) bond under the following circumstances: When you buy the bond the exchange rate is $2.00 = £1. You pay £45 ($90.00) for the British bond. "You sell the bond for £50. No interest payment was expected or received. When you sell the bond, the exchange rate is $2.25 = £1. What is your gain or loss in dollars? $||- (Round your response to the nearest penny and include...
Suppose that you buy, and one year later sell, a foreign (British) bond under the following circumstances: When you buy the bond the exchange rate is $2.00 = £1. You pay £45 ($90.00) for the British bond. You sell the bond for £50. No interest payment was expected or received. When you sell the bond, the exchange rate is $1.75 = £1. What is your gain or loss in dollars? $ (Round your response to the nearest penny and include...
The following are the foreign currency positions of an FI, expressed in the foreign currency: Currency Assets Liabilities FX Bought FX Sold Swiss franc (Sf) Sf 132,600 Sf 54,570 Sf 12,750 Sf 17,850 British pound (£) £ 42,500 £ 21,500 £ 15,500 £ 22,000 Japanese yen (¥) ¥ 8,200,000 ¥ 3,500,000 ¥ 1,600,000 ¥ 9,100,000 The exchange rate of dollars for Sf is 1.02, of dollars for British pound is 1.31, and of dollars for yen is .00953. The following...
The following are the foreign currency positions of an H. expressed in the foreign currency Currency Swiss franc (SE) British pound (£) Japanese yen (Y) Assets Sf 127,500 38,168 17,869,885 Liabilities Sf 51,000 £ 16,794 43, 147,954 FX Bought SE 10, 200 £ 11,450 Y1, 259, 181 EX Sold SE 15,300 £ 15,267 79, 233, 998 The exchange rate of dollars for Sfis 1.02, of dollars for British pound is 131, and of dollars for yen is 0.00953. The following...
If you buy a bond with 8 years remaining to maturity and sell it a year later, what will your rate of return be if the Yield to maturity at the time you buy the bond is 6.5% and 7.0% when you sell it. The bond pays a coupon rate of 5%.
1. Exchange Rate: Suppose the direct foreign exchange rates in U.S. dollars are: 1 British pound = $1.60 1 Canadian dollar = $0.74 Required: a. What are the indirect exchange rates for the British pound and the Canadian dollar? b. How many pound must a British company pay to buy goods costing $8,000 from the U.S. company? c. How many U.S. dollars must be paid for a purchase costing 4,000 Canadian dollars? 2. Changes in Exchange Rates: Upon arrival at...
I he tollowing are the toreign currency positions of an H, expressed in the foreign currency Currency Swiss franc (Sf) British pound (6) Japanese yen () Assets Liabilities 51,000 EX Bought FX Sold Sf 127,500 38,168 7,869, 885 Sf Sf 10,200 11, 450 Y1, 259, 181 15,300 15,267 Y9, 233, 998 16,794 Y3,147,954 The exchange rate of dollars for Sf is 1.02, of dollars for British pound is 1.31, and of dollars for yen is 0.00953. The following are the...
2) A year ago, you purchased a $1,000 face value bond for $1024. A year later you sold the bond for $1,007 after receiving a coupon payment of $55. What was your rate of capital gain? (Answer in tenth of a percentage i.e. 3.7 & include a minus sign if it is a negative return).
You buy a stock at $25 and sell it 6 months later for $22. If your HPR was 0%, how many dollars in dividends must you have received while holding the stock?
You buy a 5-year zero coupon bond with 4% yield to maturity. You sell the bond 2 years later when it's yield to maturity is 2%. What was your annualized holding period return?