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- 2011-7-2
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currency hedged foreign bond return
-The expected local return on the bond is 8.5%.
-The 1 year risk free 1.3% for US.
-The 1 year risk free 4.6% for Australia.
-spot exchange 0.69 USD/AUD
-one year forward 0.67 USD/AUD
What is the expected return on the bond when Australian currency is fully hedged.
The answer 5.2% is wrong.
Reason for it?
thx |
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发表于 2011-7-13 14:39
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