Which bond should you purchase


Problem

Assume that you have $100,000 to invest in either U.S. or French bonds. The U.S. bonds pay 10% interest, while the French bonds pay 5% interest. Both bonds mature in one year. The dollar currently trades for 0.8 euros, and you expect the dollar to trade for 0.5 euros one year from now. Which bond should you purchase? Explain.

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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Microeconomics: Which bond should you purchase
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