$11$:$52$

$-|$

$66$

helo

TS

Question $6$

A default$-$free foreign bond would be exactly equivalent to a default$-$free domestic bond if:

Select one

The principal payment at maturity is

A$.$ currency$-$hedged into the domestic currency.

B$.$ Each cash flow is currency$-$hedged to its specific due date.

A rolling hedge of the foreign

C$.$ currency value is maintained throughout the holding period.

D$.$ The exchange rate is fixed and the initial yields are the same.

Ouection $7$

halo.gcu.edu