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Which bond is the best to invest in

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Reference no: EM133061432

-A 10-year United States bond has a current yield of 1.55% with the price of $98.38 and a coupon of 1.38

-A 10-year Australian bond has a current yield of 1.76% with the price of $93.00 and a coupon of 1.00

- Exchange rate 1.36398 (USD to AUD)

1) If you had $1000 USD to invest how much would you make after the 10 years? What would the total amounts and percentages be at the end when the bonds mature? Show math, please.

2) Should you pay more or less for that foreign bond in US Dollars?

3) Which bond is the best to invest in?

Reference no: EM133061432

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