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    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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    https://brainmass.com/economics/bonds/fully-hedged-return-30143

    Solution Preview

    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 ...

    Solution Summary

    The expert calculates the fully hedged return if you invest in this bond. The spot rate of HUF/GBP is found.

    $2.19

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