Question: Effective Yield Chapter 6 To diversify her portfolio a US investor obtains British pounds when the pound is worth $1.50 and buys a UK commercial

Effective Yield Chapter 6 To diversify her portfolio a US investor obtains British pounds when the pound is worth $1.50 and buys a UK commercial paper with a par value of 10,000 pounds. The purchase price at the time was 9,700 pounds. In one year, convert the proceeds from the investment back to dollars at the prevailing spot rate of $1.58 per pound. Calculate the effective yield

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