Question: A two year dual currency bond with a principal value of GBP 250 pays annual coupons of USD 10.00. The USD yield is 4%. The

A two year dual currency bond with a principal value of GBP 250 pays annual coupons of USD 10.00. The USD yield is 4%. The present value of the bond is currently USD 403.50. What is the forward exchange rate for converting GBP into USD in two years time that is implied by the bond price? Show your working.

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