Effective yield of investing in rand


Problem:

Can someone with knowledge in International Financial management help with the following problem:

Bullock Corporation invests 1,500,000 South African rand at a nominal interest rate of 10%. At the time the investment is made, the spot rate of the rand is $.205. If the spot rate of the rand at maturity of the investment is $.203, what is the effective yield of investing in rand?

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Finance Basics: Effective yield of investing in rand
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