A U.S.resident purchases a bond issued by the Canadian government.If the Canadian dollar appreciates relative to the U.S.dollar over the term of the bond, the U.S.investor will:

Question

Quizplus · Accepted Answer

If the Canadian dollar appreciates relative to the U.S. dollar, the return on the investment will increase when converted back into U.S. dollars. This is because the investor will receive more U.S. dollars for each Canadian dollar earned.

A USResident Purchases a Bond Issued by the Canadian Government