What was your total return in percent form on investment

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Problem 1: Suppose that you are an American investor. Sometime back, you bought a Gilt (a British government bond) at par for 200,000 GBP (which includes accrued interest). At the time, the spot GBP:USD was $1.4152. Yesterday, you sold the Gilt for 197,250 GBP (which includes accrued interest). Over the period that you held the bond, you collected coupon interest of 21,275 GBP. At the time you sold the bond, you converted the sale proceeds and the coupons collected back to dollars at a spot exchange rate of GBP:USD = $1.4582. What was your total return (in percent form) on this investment measured in dollars?

Reference no: EM132736774

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