Question: Can you please provide the explanation, formula and correct answer for the problem above? The current price of a German bond is 98 and the

Can you please provide the explanation, formula and correct answer for

Can you please provide the explanation, formula and correct answer for the problem above?

The current price of a German bond is 98 and the current exchange rate is 1=$1.05. The bond pays a coupon of 10 per period. You expect the bond price to increase to 105 at the end of the period. Also, you expect the exchange rate to become 1=$1.15 at the end of the period. What is the expected dollar rate of return on the German bond for the period? Select one: a. 28.52% b. 19.00% c. 25.55% d. 22.87%

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