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Alleme Keep the Highest/0.1 6. Factors affecting International bond prices os Suppose you invested in...

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Alleme Keep the Highest/0.1 6. Factors affecting International bond prices os Suppose you invested in a bond that has a par value of 2.142,357.1429 British pounds, a coupon rate of 10 percent (with payments being made at the end of each year), and four years until its maturity. Also suppose that the value of the sound is currently 1.40, For each of the scenarios, caciulate the forecasted cash flows for years 1, 2, 3, and (Hint: Do not found intermediate calculations. Round your al answers to the nearest whole dolar value.) Scenario I (Stable Pound) Forecasted value of the pound Forecasted dollar cash flows Year 1 $1,40 Year 2 31.40 Year $1.40 Year 4 $1:40 Year 1 $135 Year 3 Scenario 11 (Weak Pound) Forecasted value of the pound Forecasted dollar cash rows Year 2 $1.36 Year 4 5134 51.10 S Year 2 Year 3 Scenario II (Strong Pound) Forecasted value of the pound Forecasted dolar cash flows Year 1 $142 Year 4 $1.48 $1.51 Based on your calculations, the least attractive foreign bonds are those that are denominated in a currency which over time Grade It Now Save & Continue

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