Find the dollar value of the peso bond


Problem

With the perpetuity bond paying 100,000 pesos per year, suppose the dollar is expected to have an inflation rate of 2%. Find the dollar value of the peso bond. Do the same if expected inflation is 12%.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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International Economics: Find the dollar value of the peso bond
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