When you buy the bond the exchange rate is $1.50 = pound1. You pay pound45 ($67.50) for the British bond. You sell the bond

Question

3 years ago

15

for pound50. No interest payment was expected or received. When you sell the bond, the exchange rate is $1.70 = pound1.

1 answer:

natka813 [3] · Answer 1 · 2022-02-02T22:55:29+03:00

Answer:

The gain is of $17.50

Step-by-step explanation:

When you buy the bond the exchange rate is $1.50 = £1.

You pay £45 = $1.50\times45$ =$67.50 for the British bond.

No, you sell the bond for £50 and the exchange rate is $1.70 = £1.

So, you earned $50\times1.70=85$ dollars

Your gain is $85-67.50$ = $17.50

When you buy the bond the exchange rate is ​$1.50 ​= pound1. You pay pound45 ​($67.50​) for the British bond. You sell the bond