A Canadian Bond Is Initially Priced at Its Face Value

question 20

Multiple Choice

A Canadian bond is initially priced at its face value of C$1,000.At the end of the year,the bond is selling for C$1,100.If the Canadian dollar appreciates by 10%,with a 5.5% coupon,what will the U.S.dollar return on the bond equal at the end of the year?

• A)1.05%
• B)27.1%
• C)15%
• D)20%

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Definitions:

Reward System

A reward system is a structured plan to provide benefits, both monetary and non-monetary, to employees for their work achievements and performance.

Performance Bonuses

Additional financial rewards given to employees for achieving specific performance targets or exceptional work contributions.

Rewards Provided

The various forms of benefits, compensation, and recognition given to employees in acknowledgment of their work performance and contributions.

Compensation Strategy

outlines how an organization plans to reward its employees, balancing between monetary payments and non-monetary benefits.