Business, 26.03.2020 20:02 luclaymom805

Our investment manager hedges a portfolio of German Government bonds with a 3-month forward contract. The current spot rate is Euros .94/US$ and the 90-day forward rate is Euros .91/US$. At the end of the 3 month period, the German Government bonds have risen in value by 3.00% (in Euro terms) and the spot rate is now Euros .85/US$.
a. If the Bonds earn interest at the annual rate of 4.00%, paid quarterly, what is the investment manager's total USS return on the hedged German Government bonds?
b. What would the return on the German bonds have been without hedging?

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 15:30

Susan is a 5th grade teacher and loves getting up every day and going to work to teach her students. this is an example of a. extrinsic value b. interests c. intrinsic value d. external value

Answers: 2

Answer

Business, 22.06.2019 19:50

Joe pays ann to mow his lawn and ann mows vanna's lawn by mistake. vanna peers out her window and sees ann mowing, yet says nothing to ann about her mistake since vanna needs to have her lawn mowed. when ann approaches vanna for payment, vanna refuses, arguing that she never asked ann to mow her lawn. under these circumstances, ann can recover payment from vanna under:

Answers: 1

Answer

Business, 22.06.2019 20:20

This activity is important because as a marketing manager, you must allocate resources to reach your target market. during the strategic marketing process, managers move through three important phases to determine how to optimally allocate resources: a planning phase, an implementation phase, and an evaluation phase. in this interactive exercise, you are asked to review various strategic marketing actions and determine where in the strategic marketing process the action would occur. the goal of this exercise is to demonstrate your understanding of the strategic marketing process and related marketing actions.

Answers: 2

Answer

Business, 22.06.2019 21:00

In a transportation minimization problem, the negative improvement index associated with a cell indicates that reallocating units to that cell would lower costs.truefalse

Answers: 1

Answer

You know the right answer?

Our investment manager hedges a portfolio of German Government bonds with a 3-month forward contract...

Questions