A five-year, 4 percent Euroyen bond sells at par.  A comparable risk five year, 5.5 percent yen/dollar dual currency bond pays $833.33 at maturity.  It sells for ¥110,000.  What is the implied ¥/$ exchange rate at maturity?  Hint:  The par value of the bond is not necessarily equivalent to ¥100,000.   (PVIFA4%,5=4.4518, PVIF4%,5=0.8219)

Answer rating: 100% (QA)

Since the dual currency bond is of comparable risk it will ... View the full answer