Discuss the impact of the flow of dollars and euros what


1. Follow the transaction of a BMW that is manufactured in Munich, Germany to the end user in Troy with regard to the Foreign Exchange market. Discuss the impact of the flow of Dollars and Euros. What are some of the issues that might impact the price of the BMW.

2. Suppose the inflation rate has gone up unexpectedly. To maintain the price stability, the FOMC decided to raise the federal funds rate target. How would the inflation news affect the YTM on Treasury bonds and corporate bonds?

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