Solved: The exchange rate at that time was 1420 swiss francs per, Finance Basics

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The exchange rate at that time was 1420 swiss francs per

Suppose one year ago a Swiss investor bought one year U.S. Treasury bills at a price of $9,500 with a maturity value of $10,000. The exchange rate at that time was 1.420 Swiss francs per dollar. Today, at maturity, the investor receives $10,000 and the exchange rate is 1.324 Swiss francs per dollar. What is the rate of return to the Swiss investor?

5.26%
-1.89%
5.00%
-2.63%

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Finance Basics: The exchange rate at that time was 1420 swiss francs per

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Finance Basics: The exchange rate at that time was 1420 swiss francs per

Reference No:- TGS01719888

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