Assume that you buy a 1-year, 170,000-peso Philippine bond that pays 7 percent when the exchange rate is 1 Canadian dollar for 40 pesos. If, after one year, the peso falls to 1 Canadian dollar equals 46 pesos, how much you gained or lost in Canadian dollars? Round your answer to the nearest dollar amount. (Click to select) $

Assume that you buy a 1-year, 170,000-peso Philippine bond that pays 7 percent when the exchange rate is 1 Canadian dollar for 40 pesos. If, after one year, the peso falls to 1 Canadian dollar equals 46 pesos, how much you gained or lost in Canadian dollars? Round your answer to the nearest dollar amount. (Click to select) $

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter6: An Introduction To The Foreign Exchange Market And The Balance Of Payments

Section: Chapter Questions

Problem 12E

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