1. What would be the FX breakeven Euro/USD rate of an USD denominated 4-year bond, purchased at 10% discount, held to maturity, paying a 3% coupon annually if purchased by a European investor. Spot EUUSD1.1200. Volatility of the EURUSD is 11% and the risk free rate of the USD and EUR are respectively 1% and -0,1%

Answer rating: 100% (QA)

Answer Given Spot rate EURUSD 11200 USD riskfree rate 001 EUR riskfree rate 0001 Coupon rate 003 Dis... View the full answer