Let If Be the Interest Rate Being Paid on a Foreign

question 45

Multiple Choice

Let if be the interest rate being paid on a foreign bond, and let i be the interest rate being paid for a domestic bond; let P be the price of the domestic bond and let Pf be the price of the foreign bond. If exchanges rates are fixed and the bonds are equal in terms of risk:

• A) if = i.
• B) P = Pf times units of domestic currency/unit of foreign currency.
• C) the expected return from the foreign bond = the expected return from the domestic bond.
• D) all of the answers given are correct.

---

Definitions:

Health and Wellness

An active process of becoming aware of and making choices toward a healthy and fulfilling life, encompassing physical, mental, and social well-being.

Communication Strategies

Plans of action designed to convey information effectively to a target audience.

Marketing Channels

The pathways or routes through which goods and services flow from the producer to the consumer, including physical and online distributions.

Ethnic Groups

Communities or populations sharing common cultural traits, geographical origins, linguistic backgrounds, or ancestry.