International Financial Management 6th Edition by Sanjiv Eun, Cheol Resnick, Bruce Sabherwal

تمرين 2

A five-year, 4 percent Euroyen bond sells at par. A comparable risk five year, 5.5 percent yen/dollar dual currency bond pays $833.33 at maturity. It sells for ¥110,000. What is the implied ¥/$ exchange rate at maturity Hint: The par value of the bond is necessarily equivalent to ¥100,000.