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Q1) If one U.S. dollar purchases 1.64 Canadian dollars, how many U.S. dollars can you buy for one Canadian dollar? Assume 144 yen could be bought in foreign exchange market for 1 U.S. dollar today. If yen depreciates by 8.0% tomorrow, how many yen could one U.S. dollar purchase tomorrow?

Q2) Assume a foreign investor who holds tax-exempt Eurobonds paying 9% is considering investing in the equivalent-risk domestic bond in the country with 28% withholding tax on interest paid to foreigners. If 9% after-tax is investor's required return, what before-tax rate would domestic bond require to pay to give the required after-tax return?

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Category:- Basic Finance
Reference No.:- M9160826

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