1. Assume that an investor pays $920 for a long-term bond that carries a coupon of 11%. In 3 years, he hopes to sell the issue for $1,020. If his expectations come true, what yield will this investor realize? (Use annual compounding.) What would the holding period return be if he were able to sell the bond (at $1,020) after only 9 months?
2. Which of the following is an advantage of American Depository Receipts (ADRs) No foreign currency exchange risk Financial statements are written in a foreign language or english Financial statements are translated quickly Less frequent reporting of financial results.