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A Japanese investor is considering buying a one-year government bond from Australia. The Australian bond offers a 5% annual interest rate, guaranteed in Australian dollars. Based on this information, the Japanese investor is guaranteed to receive a 5% return on their investment when measured in Japanese yen.
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A Japanese investor is considering buying a one-year government bond from Australia. The Australian bond offers a 5% annual interest rate, guaranteed in Australian dollars. Based on this information, the Japanese investor is guaranteed to receive a 5% return on their investment when measured in Japanese yen.