1 in china a big mac costs yuan 16 local currency while in, Ask an Expert

Finance

1. In China a Big Mac costs Yuan 16 (local currency), while in the US the same Big Mac costs $4.56. The exchange rate between Yuan and US dollar is Yuan 6.1341/$. According to purchasing power parity, is Chinese Yuan overvalued or undervalued? Why?

2. The price of the bond has dropped, even though the yield-to-maturity has stayed constant year-over-year. In one sentence, explain why the price dropped.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92835367

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