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You Bought a Yen-Denominated Corporate Bond at the Beginning of the Year

Question 3

Multiple Choice

You bought a yen-denominated corporate bond at the beginning of the year for ¥100,000.The bond paid 3 percent annual interest and was trading for ¥110,000 at year-end.The exchange rate was $1 = ¥100 at the beginning of the year and $1 = ¥97 at year-end.What would be your U.S.dollar holding return on the bond?


A) 3.09%
B) 6.09%
C) 13%
D) 16.49%
E) 30%
F) None of the above.

Correct Answer:

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