Question: Question 11 (1 point) Bonus question. How much would you suggest Microsoft to bid for a one-year euro- denominated zero coupon bond to be issued


Question 11 (1 point) Bonus question. How much would you suggest Microsoft to bid for a one-year euro- denominated zero coupon bond to be issued by the German Republic with a redemption (par) value of 100? The German Republic has the highest credit rating possible, AAA and, thus, its bonds can be considered risk free. The dollar risk free rate is 0.77%, and the euro risk free rate is 0.32%. a) 56.50 b) $56.50 c) 75.76 d) $75.76 e) 99.24 f) $99.24 O g) 99.68 h) $99.68
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