fully hedged return
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You are a fixed income fund manager based in UK. A Hungarian government bond paying annual 8.5% coupon with one year remaining life is trading at 99.55. Spot rate of HUF/GBP is 350.72, one year forward HUF/GBP is 356.35. Calculate the fully hedged return if you invest in this bond.
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Solution Summary
The expert calculates the fully hedged return if you invest in this bond. The spot rate of HUF/GBP is found.
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See the attached file. hope this will help. Thanks
You are a fixed income fund manager based in UK. A Hungarian government bond paying annual 8.5% coupon with one year remaining life is trading at ...
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