Suppose you lived in Canada, and you bought a 10-year bond in Chinese Yuan (CNY) in...
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Suppose you lived in Canada, and you bought a 10-year bond in Chinese Yuan (CNY) in 2010 at the 5% annually compound rate. In the same period, the Canadian Dollar (CAD)/Chinese Yuan (CNY) exchange rate, ECAD/CNY, depreciated by 30%. Please calculate your rate of return in CAD at the maturity of the bond. Suppose you lived in Canada, and you bought a 10-year bond in Chinese Yuan (CNY) in 2010 at the 5% annually compound rate. In the same period, the Canadian Dollar (CAD)/Chinese Yuan (CNY) exchange rate, ECAD/CNY, depreciated by 30%. Please calculate your rate of return in CAD at the maturity of the bond.
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