19 January 2014
the price of a bond just before a year of maturity is 5000$ its redemption value is 5250$ at end of said period. 350$ interest pr annum. doller appreciates by 2% during said period. calculate rate of return
20 January 2014
Return will be 12% in case the person happens to be in US. In case the person happens to be in India, then, exchange rate on the date of investment is to be assumed (as it is not given). Suppose it is usd 1 = inr 60. Then on maturity date, exchange rate will be usd 1 = inr 61.2245 and accordingly return needs to be calculated on increase in inr value between the date of investment and maturity.
CAclubindia
