Exchange rate at maturity

by | Sep 10, 2021 | Homework Help

A 1-year, 4 percent euro denominated bond sells at par. A comparable risk 1-year, 5.5 percent euro/dollar dual-currency bond pays $1,500 at maturity per €1,000 of face value. It sells for €1,250. What is the implied $/€ exchange rate at maturity? Show your work

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