The forward rate of exchange is 2 , the spot rate of exchange is 1.75. The US has a bond of 9% interest and Canada has a bond for 5% interest. What is the amount you can collect in US dollars for the Canada bond on an investment of $10,000? $10,937.50 and the Canadian investment is better than the US investment O $10,937.50 and the Canadian investment is worse than the US investment O $10,900 and the Canadian investment is better than the US investment $10,900 and the Canadian investment is worse than the US investment

The forward rate of exchange is 2 , the spot rate of exchange is 1.75. The US has a bond of 9% interest and Canada has a bond for 5% interest. What is the amount you can collect in US dollars for the Canada bond on an investment of $10,000? $10,937.50 and the Canadian investment is better than the US investment O $10,937.50 and the Canadian investment is worse than the US investment O $10,900 and the Canadian investment is better than the US investment $10,900 and the Canadian investment is worse than the US investment

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter23: The International Trade And Capital Flows

Section: Chapter Questions

Problem 45P: Table 23.7 provides some hypothetical data on macroeconomic accounts for three countries represented...

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The forward rate of exchange is 2 , the spot rate of exchange is 1.75. The US has a bond of 9% interest and Canada has a bond for 5% interest. What is the amount you can collect in US dollars for the Canada bond on an investment of $10,000? Group of answer choices $10,937.50 and the Canadian investment is worse than the US investment $10,900 and the Canadian investment is better than the US investment $10,900 and the Canadian investment is worse than the US investment $10,937.50 and the Canadian investment is better than the US investment
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