For a domestic investor purchasing bonds in a foreign market and currency:
answer : Appreciation of both asset & foreign currency benefits the domestic investor
Can someone explain how?
A US investor buys bonds denominated in AUD.
If the price of the bonds in AUD increases, the investor gets more AUD, which is a benefit.
If AUD appreciates vis-à-vis USD, then the investor gets more USD per AUD, which is a benefit.
Got it thanks
My pleasure.