A European Investor wants to invest 100 Million Euro in the USD bond issued by Apple (Apple 2% 1/3/2030) but he does not want to be exposed to the EUR/USD moves. His horizon is 6 months.

 

Market data:

-Date is 1/3/2020

-Bond price= 100%

-EUR/USD trades at 1,1000

-FX Forward EUR/USD 6 months is quoted 60 points

 

What are the trades to implement?

 

Calculate the P&L after 6 months (1/9/2020) if the Apple bond trades at 102% and EUR/USD trades at 1.15?

Answer rating: 100% (QA)

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