As an Omani investor you have invested in Tunisian Government bonds (denominated in Tunisian Dinar) which pays you fixed coupon rate. Assume that during your investment period, the Omani Rial (OMR) has significantly appreciated against Tunisian Dinar. How would it affect your cash flows in Oman? Why?

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter8: Relationships Among Inflation, Interest Rates, And Exchange Rates
Section: Chapter Questions
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As an Omani investor you have invested in Tunisian Government bonds (denominated in Tunisian Dinar) which pays you fixed coupon rate. Assume that during your investment period, the Omani Rial (OMR) has significantly appreciated against Tunisian Dinar. How would it affect your cash flows in Oman? Why?

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