What is loss or gain to swiss investor who holds bond

Assignment Help Financial Management
Reference no: EM131914135

Suppose you purchase a 9-year AAA-rated Swiss bond for par that is paying an annual coupon of 7 percent and has a face value of 2,900 Swiss francs (SF). The spot rate is U.S. $0.66667 for SF1. At the end of the year, the bond is downgraded to AA and the yield increases to 9 percent. In addition, the SF depreciates to U.S. $0.74074 for SF1.

a. What is the loss or gain to a Swiss investor who holds this bond for a year? (Input the amount as a positive value. Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

b, What is the loss or gain to a U.S. investor who holds this bond for a year? (Input the amount as a positive value. Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

Reference no: EM131914135

Questions Cloud

Compute the proportion of defective items : Compute the proportion of defective items in the sample. Compute the standard error of p¯.
Explain what is the role of state-based action coalitions : Explain what is the role of state-based action coalitions and how do they advance goals of the Future of Nursing: Campaign for Action?
Test the mean difference for significance : Test the mean difference for significance. Discuss your findings.
Calculating the lower and upper limits : If somebody could show me the steps for how to solve this problem, I would really appreciate it. I feel like I am understanding the general concept
What is loss or gain to swiss investor who holds bond : What is the loss or gain to a Swiss investor who holds this bond for a year? What is the loss or gain to a U.S. investor who holds this bond for a year?
Cigarette smoking and bone density in newborns : In a study of maternal cigarette smoking and bone density in newborns, 77 infants of mothers who smoked has a mean bone mineral content
Which focus area would be the most challenging and why : Research and explain the meaning of each focus area. Which focus area is the most important and why? Which focus area would be the most challenging? And why?
Market rate of return on similar securities : What is one share of this stock worth today if the market rate of return on similar securities is 19 percent?
Represent a good income for the bank : And the manager hopes you help him take a decision of to grant him or not the requested credit, in case you grant it

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd