What type of exchange rate movement concerns

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a U.S. insurance company invests $1,000,000 in a private placement of British bonds. Each bond pays 300 British pounds in interest per year for 20 years. If the current exchange rate is 1.364/$, what is the nature of the insurance company's exchange rate risk? Specifically, what type of exchange rate movement concerns this insurance company?

Reference no: EM132679233

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What type of exchange rate movement concerns : If the current exchange rate is 1.364/$, what is the nature of the insurance company's exchange rate risk?
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