Assume that you buy a l-year, 150,000-peso Philippine bond that pays 8 percent when the exchange rate is 1Canadian dollar for 40 pesos. If, after one year, the peso falls to 1 Canadian dollar equals 45 pesos, how much have you gained or lost in Canadian dollars? Round your answer to the nearest dollar amount

Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter36: Exchange Rates And Financial Links Between Countries
Section: Chapter Questions
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Assume that you buy a 1-year, 150,000-peso Philippine bond that pays 8 percent when the exchange rate is 1 Canadian dollar for 40
pesos. If, after one year, the peso falls to 1 Canadian dollar equals 45 pesos, how much have you gained or lost in Canadian dollars?
Round your answer to the nearest dollar amount
(Click to select)S
Transcribed Image Text:Assume that you buy a 1-year, 150,000-peso Philippine bond that pays 8 percent when the exchange rate is 1 Canadian dollar for 40 pesos. If, after one year, the peso falls to 1 Canadian dollar equals 45 pesos, how much have you gained or lost in Canadian dollars? Round your answer to the nearest dollar amount (Click to select)S
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