If you receive a dollar return of 6 percent on a one-year Korean bond that yields 10 percent annually, this means that between the purchase date and the time of maturity:
a. the Korean won (KRW) has depreciated 4 percent against the U.S. dollar.
b. the dollar price of the Korean won (KRW) has risen by 10 percent.
c. the percentage change in the dollar per Korean won exchange rate is 6 percent.
d. the dollar proceeds from the Korean bond are 4 percent higher than the initial dollar investment.
e. the dollar has depreciated 16 percent against the Korean won.
a
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In the political market place, typical voters
A) support policies that they think will make the poor better off. B) fire bureaucrats who support efficient policies. C) are fully informed. D) are sometimes rationally ignorant about a policy.
The assumption that the magnitude of the slope of an indifference curve decreases moving to the right along the indifference curve is known as the assumption of
A) the price effect. B) a diminishing marginal rate of substitution. C) an increasing marginal rate of substitution. D) an indifference curve effect.