Suppose you, as an American, invest in one-year Japanese government bonds that pay 1% interest. A year later, the yen has appreciated 5% against the dollar. Your international return (net of currency exchanges) would be

Suppose you, as an American, invest in one-year Japanese government bonds that pay 1% interest. A year later, the yen has appreciated 5% against the dollar. Your international return (net of currency exchanges) would be

Suppose you, as an American, invest in one-year Japanese government bonds that pay 1% interest. A year later, the yen has appreciated 5% against the dollar. Your international return (net of currency exchanges) would be




A) -4%
B) 1%
C) 4%
D) 6%








Answer: D