Which bond has the higher yield after inflation

Reference no: EM13290433

If a similar US dollar denominated bond yielded 6.0%, which bond has the higher yield after inflation? Is the difference less than .2%? Assume the current spot is $1.2200/E and one-year forward is $1.2450/E. Show work.

a. US Bond, no
b. US Bond, yes
c. Euro Bond, no
d. Euro Bond, yes
e. Can't tell, we can't compute depreciation

Reference no: EM13290433

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