fully hedged return
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.
© BrainMass Inc. brainmass.com February 24, 2021, 2:34 pm ad1c9bdddfhttps://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