Assume that you buy a 1-year, 168,000-peso Philippine bond that pays 9 percent when the exchange rate is 1 Canadian dollar for 42 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) $

Assume that you buy a 1-year, 168,000-peso Philippine bond that pays 9 percent when the exchange rate is 1 Canadian dollar for 42 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) $

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter11: Foreign Exchange, Trade, And Bubbles

Section: Chapter Questions

Problem 2MC

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IN US$ PER US$ FRI THURS FRI THURS Americas Argentina 0.0172 0.0172 58.278 58.2427 peso Brazil real 0.2431 0.2401 4.1127 4.1655 Canada dollar 0.7619 0.7612 1.3126 1.3138 Chile peso 0.001407 0.001404 710.7 712 The above table shows U.S.-dollar foreign-exchange rates in New York trading (Oct. 19, 2019). Source: Wall Street Journal. Which currency depreciated from Thursday to Friday? Which currency appreciated?
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Currency Values in 2015 and 2016 Canada (dollar) (peso) (yuan) (yen) Country Currency Percentage 2015 2016 0.82710.6892 0.0683 0.0538 0.1608 0.1522 |0.0080 0.0086| 36% Мexico 28% China 20% Japan 16% Based on the exchange rate table, which statement is correct? A. The Chinese yuan appreciated in value between 2015 and 2016. B. The Canadian dollar depreciated in value between 2015 and 2016. C. The Japanese yen depreciated in value between 2015 and 2016. D. The Mexican peso appreciated in value between 2015 and 2016.