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Assuming That the Bond Sells at Par,the Implicit $/£ Exchange

Question 66

Multiple Choice

Assuming that the bond sells at par,the implicit $/£ exchange rate at maturity of a British pound-U.S.dollar dual currency bond that pays £581.40 at maturity per $1,000 of par value is


A) $1.95/£1.00.
B) $1.72/£1.00.
C) $1.58/£1.00.
D) $0.5814/£1.00.

Correct Answer:

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