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A us insurance company invests 1000000 in a private

Question: A U.S. insurance company invests $1,000,000 in a private placement of British bonds. Each bond pays £300 in interest per year for 20 years. If the current exchange rate is £1.5612 for U.S.$1, what is the nature of the insurance company's exchange rate risk? Specifically, what type of exchange rate movement concerns this insurance company?

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Finance Basics: A us insurance company invests 1000000 in a private

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