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olga_2 [115]
3 years ago
15

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

for pound50. No interest payment was expected or received. When you sell the​ bond, the exchange rate is​ $1.70 ​= pound1.
Mathematics
1 answer:
natka813 [3]3 years ago
3 0

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

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